(Alliance News, 14.Jan.2022) — Echo Energy PLC announced on Friday it had entered the Chilean solar energy market and reported a 71% increase in total liquid sales in its fourth quarter.
Shares in Echo Energy were down 15% at 0.46 pence on Friday afternoon in London. The stock had risen 15% between December 29 and January 13.
The London-based energy company focused on Latin America said it had entered the Chilean market with an option agreement to purchase a 70% interest in a 3 megawatt Vincente Mendez solar project in Chile. This was done through a partnership with Chilean company Land & Sea SpA, a developer of solar projects.
Echo Energy said that it raised gross proceeds of GBP660,000 through the issue of 143.5 million shares at 0.46 pence per share. The company said the proceeds would be applied towards the formation of the solar project joint venture.
Echo Energy explained that the partnership with Land & Sea was to fund, construct and operate the Chilean solar project. Entry into the project requires no upfront acquisition payment, Echo Energy added.
Land & Sea will manage the project locally, without a management fee. Following construction and on the sale of the project, the construction loan provided will be repaid to Echo Energy at 4% interest, with remaining sale proceeds split 70% Echo Energy and 30% Land & Sea.
Total gross capital expenditure for the project is currently anticipated to be approximately USD2.6 million. Subject to the final investment decision, construction is expected to begin in the second quarter of 2022 and to complete in the third quarter of 2023.
Updating on the fourth quarter of 2021, Echo Energy said its net liquid production averaged 240 barrels of oil per day whilst net gas production averaged 7.0 million standard cubic feet per day.
The company said these production levels have been achieved despite a province-wide strike that temporarily reduced production levels over a six-day period in mid-December.
Production for the first eight days of 2022 has been strong, it continued, with liquids production net averaging 262 barrels of oil per day and net gas production averaging 8.3 million standard cubic feet per day.
Echo Energy said total liquids sales net over the fourth quarter reached 25,881 barrels of oil. In the previous quarter this stood at 15,050 barrels of oil, representing an increase of 71% over the third quarter.
Echo Energy also announced the appointment of Christian Yates as independent non-executive director, effective from January 17. Gavin Graham will be steeping down as a director of the company concurrently with Yates’s appointment.
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By Heather Rydings; heatherrydings@alliancenews.com
