Echo Energy shares suspended as it discusses farm-in offer

South and Central America-focussed upstream gas company Echo Energy responded to a recent share price movement on Monday, confirming that it was in discussions in relation to a potential farm-in by the company into certain onshore oil and gas assets in South America.

The AIM-traded firm said that, by virtue of its size, the proposed transaction would constitute a reverse takeover under Rule 14 of the AIM Rules for Companies.

“Accordingly, the company's ordinary shares will be suspended from trading on AIM with effect from 0730 GMT today, pending publication of an AIM admission document and circular to shareholders to approve the proposed transaction or an announcement that the proposed transaction has been terminated,” the Echo Energy board said in its very brief statement.