Slide 1: August 2022
August 2022
Slide 2: Disclaimer
Disclaimer The information contained in this confidential document (“Presentation”) has been prepared by Echo Energy plc (the “Company”). It has not been fully verified and is subject to material updating, revision and further amendment. This Presentation has not been approved by an authorised perso
Slide 3: Disclaimer Continued
Disclaimer Continued While the information contained herein has been prepared in good faith, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers give, have given or have authority to give, any representations or warranties (express or implied) as to, o
Slide 4: Echo Energy: A producing energy company highly leveraged to growth
Echo Energy: A producing energy company highly leveraged to growth Financial Metrics An AIM listed energy company with production of 1,445 boepd *2 Ticker (LSE: AIM) ECHO Share price1 0.28 pence/share GBP Material reserves and resources platform: 2P Reserves of 4.06 MMboe and 2C Resources of Mar
Slide 5: Investment Rationale
Investment Rationale 1 Quality Portfolio 2 Substantial Existing Production and Revenue 3 Commodity Price Leverage: benefitting from today’s higher price cycle Operational Gearing: Substantial production growth from existing 4 assets including near term lower-risk plus high impact opportunities 5 Pro
Slide 6: Santa Cruz Sur
Asset Overview Santa Cruz Sur Portfolio of 5 production concessions located in the onshore Austral Basin, southern Argentina • Majority of Gas is exported via main Location Austral Basin, Argentina trunkline to Buenos Aires Status Production • Liquids are exported via terminal to Echo Interest 70% P
Slide 7: Surviving the Pandemic: Liquid Production (bopd)
Surviving the Pandemic: successfully steering a course through challenging times Liquid Production 650 550 450 Production (bopd) 350 250 150 50 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Pre Pandemic Production Target Growth driven by infrastructure debottlenecking, opening up s
Slide 8: Surviving the Pandemic: Production (MMscf/d)
Surviving the Pandemic: successfully steering a course through challenging times 10 Production decrease largely due to infrastructure capacity reduction resulting from pandemic Material infrastructure upgrades have commenced 8 Production level if Oceano had been at current Production (MMscf/d) 6 pro
Slide 9: The Right Choices Were Made Through the Pandemic
The Right Choices Were Made Through the Pandemic Preserved cash, reduced costs Successful completion of financial restructuring with Noteholder support Managed trade creditors and renegotiated supply contracts Took control of critical infrastructure previously leased from contractors in Sant
Slide 10: Leveraged to Commodity Prices
Leveraged to Commodity Prices Realised Liquid Prices (US$/bbls) Realised Gas Prices (US$/mscf) May 22 total revenues 108% increase on April 22 Investor Presentation Q3 2022 7
Slide 11: Incremental increases in annualized revenue
Production Now Geared to Leverage Commodity Price 18 May 22 revenue increased 108% vs. April 22 Current production levels 16 2022/23 gas contracts up 65% over previous year Incremental increases in annualized revenue Near-term production growth 14 Highly leveraged to the current momentum in co
Slide 12: Enhancement Plan: achievable increase by c. 40% in 6 months
Enhancement Plan (near-term production growth): achievable increase by c. 40% in 6 months c. 2000 boped Potential of additional 615 1445 boped boepd online by year end + 2.1 MMscf/d (370 boepd) Near term net +240 bopd Infrastructure Upgrade ofAdditional compressors production upgrades wells (3 month
Slide 13: Near Term Production Growth (Enhancement Plan): achievable with detailed steps
Near Term Production Growth (Enhancement Plan): achievable with detailed steps Infrastructure Upgrades Well Recommissioning 1. Installation & commissioning of additional power units 4. Recommissioning of offline oil Additional power to support increased production in three fields wells back into f
Slide 14: Enhancement Plan Costs
Enhancement Plan Costs The Enhancement Plan is expected to require an estimated US$2.1 million (gross to 100% Santa Cruz Partnership) to deliver the production increases over the six month period. Includes: c. US$ 0.57 mln (gross) for mercury removal facilities c. US$ 0.2 mln (gross) for rig u
Slide 15: Asset Potential in Santa Cruz Sur
Asset Potential in Santa Cruz Sur Reserve base supports growth Existing near-term production plans only a fraction of reserve base Significant scope in portfolio choices to bring reserves & resources into production Additional exploration upside Green marketing is a practice whereby We are not o
Slide 16: Additional Growth: Intervention Programme Targeting Non-Producing Proved Reserves
Additional Growth: Intervention Programme Targeting Non-Producing Proved Reserves (Tier 1) Potential for initial production uplift from the Tier 1 portfolio could be up to 7.2 MMscf/d (c.1,300 boe/d) for gas & 360 bbls/d for liquids*1 Portfolio consists of 39 wells divided into three tiers *1 we
Slide 17: Asset Vision: Potential of Santa Cruz Sur Base Business
Asset Vision: Potential of Santa Cruz Sur Base Business Extending the current developed field areas Net Production Potential Build-up Sweating the value from existing fields ‘brownfield assets’ Production (boepd) Net 3,000 Campo Limite well test Monte Aymond development Current Enhanced Additional O
Slide 18: Proposed Wholesale Restructuring of Balance Sheet
Proposed Wholesale Restructuring of Balance Sheet Significant proposed conversion of total debt and accrued interest to equity at premium to market price 100% of Lombard Odier debt facility to be converted to equity at 0.45p Accrued interest for periods Q3 2021 to 31 October 2022 inclusive imm
Slide 19: Process for Further Restructuring the Bonds
Process for Further Restructuring the Bonds A Noteholder Meeting will be required to pass an Extraordinary Resolution. There are €20 million notes held in €100,000 increments, meaning 200 votes in total. The meeting will require 21 clear days notice. Noteholders representing 75% of the princip
Slide 20: Debt Restructure – Equity to Debt
Debt Restructure – Equity to Debt Current Value of Equity Vs Debt Chart Post Restructuring Value of Equity Vs Debt - Equity includes 290.489m equity raise shares - Share price of 0.25p used for equity valuation - Share price of 0.25p used for equity valuation - Euro to USD FX rate of 0.8343 - Debt i