Echo Energy raises £8.5m from placing

Upstream gas company Echo Energy has successfully raised £8.5m through the issue of 71.18m new ordinary shares in the company at 12p each.

Since Echo's acquisition of its Argentinian portfolio and re-admission to AIM back in January, the firm kicked off its "busy" work programme in the South American nation and, along with its partner Compañía General de Combustibles, has completed workovers of three existing wells at its Fracción D asset.

Given the "early successes" of the Argentinian work programme, and the attractive domestic contractor rates available to the firm, Echo and CGC looked to accelerate their commitment by way of the placing.

Echo's placing "will be sufficient" to enable it to cover costs of roughly £6.3m related to its planned seismic programme at its Tapi Aike asset.

As of 1200 BST, Echo shares had tumbled 13.62% to 12.52p.