Echo Energy moves ahead with Argentinean acquisitions

South and Central America focussed upstream gas company Echo Energy a proposed 50% acquisition of multiple concessions across Argentina on Monday, with a £2m open offer planned for January.

Echo's acquisition of the Fracción C, Fracción D and Laguna De Los Capones concessions, and the associated Tapi Aike exploration permit, follows the 1 November agreement of conditional farm-in deal with the asset's current operator, Companía General de Combustibles.

A report on the Tapi Aike licence identified 41 leads over three independent plays, each with a typical gross of between 50 and 600 billion cubic feet of gas, several of which contained more than 1trn cubic feet.

Echo, which raised £4.7m after expenses through the placing of 36.4m new ordinary shares in order to fund the acquisition, plans to undertake an open offer in January of up to 11,428,57 offer shares at 17.5p as part of an effort to raise up a further £2m.

Commenting on the acquisition Echo's chief executive officer, Fiona MacAulay, said, "This transaction will give the company a material Argentinian position and I am delighted to announce the publication of our AIM admission document and a fundraise at a price equal to the mid-market price prior to suspension in trading."

"Trading in the company's ordinary shares is expected to recommence today, with the transaction expected to complete, subject to shareholder approval, in January. We are delighted to resume trading so quickly," she added.

As of 1000 GMT, shares had gained 2.86% to 18.00p.