Independent Resources : Result of GM, Acquisition and Re-Admission

RNS Number : 8879A Echo Energy PLC 03 January 2018

3 January 2018

Echo Energy plc

("Echo" or the "Company")

Result of General Meeting

Proposed acquisition of interests in oil and gas assets in Argentina

Admission of Enlarged Share Capital to trading on AIM

Echo Energy plc, the South and Central American focused upstream oil and gas company, is pleased to announce that all resolu"ons put to Shareholders at the general mee"ng of the Company held earlier today were duly passed, including in rela"on to the proposed acquisi"on by the Company of 50 per cent. interests in each of the Fracción C, Fracción D and Laguna De Los Capones concessions and a 50 per cent. interest in the Tapi Aike exploration permit, each located onshore in Argentina.

Following approval by Shareholders, the Acquisi"on Agreements will become uncondi"onal in all respects later today and dealings in the Enlarged Share Capital, as enlarged by the issue of the Placing Shares, will commence on AIM at 8.00 a.m. on 4 January 2018.

Highlights of the Acquisition and Re-Admission:

• · The Company announced on 1 November 2017 that, in line with its stated strategy, it had entered into a condi"onal farm-in agreement with Compañía General de Combus"bles S.A. ("CGC") for the acquisi"on by the Company of 50 per cent. working interests in certain of the onshore Argentinian gas and oil assets of CGC.

• · Echo will acquire 50 per cent. working interests in each of the Fracción C, Fracción D and Laguna De Los Capones Concessions and in the Tapi Aike Explora"on Permit each located in the Austral basin of Santa Cruz province, onshore Argen"na, and covering a total of 11,153km2.

• · The Acquisi"on is expected to provide the Company with a compelling blend of mul" tcf explora"on poten"al, appraisal and production.

• · On the Tapi Aike Explora"on Permit the Competent Person's Report has iden"fied 41 leads over three independent plays, each typically with gross (100%) prospec"ve resources of 50-600 Bcf at the best es"mate level; the largest two are assessed as poten"ally containing 3.8 Tcf and 2.6 Tcf of gas in place (on a gross unrisked basis) in the high case, with three others poten"ally containing in excess of 1 Tcf (on the same basis), all of these numbers confirming the highly prospec"ve value of the Tapi Aike Exploration Permit.

• · Exis"ng gross produc"on of a total of approximately 11.2 mmscfe/d (5.6 mmscfe/d net to the Company, pre-royalty) on Fracción C and Fracción D with, the Directors believe, the poten"al to significantly increase current gross produc"on across the Concessions to over 80 mmscfe/d over a five year period.

• · The Acquisi"on provides the Company with a material posi"on in Argen"na, with strong local gas prices, and a well-respected local strategic partner.

• · The Company has raised £6.4 million, before expenses (£4.7 million net of total es"mated costs and expenses rela"ng to both the Placing and Admission) through the Placing of 36,391,412 Placing Shares at 17.5 pence per Placing Share, being equal to the closing mid-market price per Ordinary Share on 27 October 2017, being the last date prior to the Ordinary Shares being suspended from trading on AIM pending publication of the admission document.

• · The Placing Shares will represent approximately 9.1 per cent. of the Enlarged Share Capital on Admission.

• · Following Admission, Echo intends to deploy the Company's exis"ng cash balances and net proceeds of the Placing towards the development of the Licences, and towards the Company's working capital requirements.

Notwithstanding comple#on of the Acquisi#on Agreements, not all of the consents required for the transfer of the par#cipa#ng interests in the Licences to the Company have been obtained. It is an#cipated that these consents, further details of which are contained in paragraphs 13.1 and 13.2 of Part VI of the admission document, will be obtained within six months following comple#on of the Acquisi#on. Should any of the consents not be obtained, then the Company will be granted an economic interest in the Licences until such time as the Company can obtain full legal title.

In comple"ng the Acquisi"on Agreements, the Company and CGC also agreed to amend the Acquisi"on Agreements such that the joint operating agreements will now be entered into on or before 29 January 2018.

Intended Open Offer

The Company also wishes to provide an update on the previously announced intended Open Offer, intended to be launched in January 2018, of up to 11,428,572 Offer Shares at 17.5 pence per Offer Share to raise up to £2.0 million, before expenses. The Open Offer was not required by the Company to fund opera"ons but was instead intended to provide qualifying shareholders with the opportunity to subscribe for additional Ordinary Shares at the same price as was available to placees under the Placing.

To avoid unnecessary costs, the Open Offer will only now be launched if, in the opinion of the Directors, the Company's Ordinary Shares trade at a level that supports the Open Offer being made prior to 31 January 2018.

Defined terms used in this announcement have the same meaning as set out in the Company's admission document dated 15 December 2017.

This announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.

For further information please contact:

Echo Energy plc

Fiona MacAulay, CEO Will Holland, CFO

[e-mail]

Smith & Williamson (Nominated Adviser)

[phone]

Azhic Basirov

David Jones Ben Jeynes Katy Birkin

Hannam & Partners (Advisory) LLP (Co-ordinating Bookrunner and Joint Broker)

[phone]

Giles Fitzpatrick

Andrew Chubb Ernest Bell

Shore Capital Stockbrokers Limited (Joint Bookrunner and Joint Broker)

[phone]

Jerry Keen Hugh Morgan Anita Ghanekar

Vigo Communications (PR Adviser)

[phone]

Patrick d'Ancona

Chris McMahon Ali Roper

For further informa"on, informa"on provided under AIM Rule 26 and the Company's admission document please see the Company's webs i te:www.echoenergyplc.com.

This information is provided by RNS

The company news service from the London Stock Exchange

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