Echo Energy, the Latin American focused upstream oil and gas company, today provides a commercial update regarding the Company's gas sales from the producing Santa Cruz Sur assets, onshore Argentina.
 
The Company has secured a new contract at a premium to prevailing spot market rates with a key gas customer for four months until end April 2021 pursuant to which the Company will supply the customer with approximately 1.8 MMscf/d gross (1.3 MMscf/d net to Echo) of natural gas. In the absence of the new contract these volumes would have been sold to the spot market. The gas price under the contract is a flat $2.00 per mmbtu representing a significant 26% premium to the prevailing local spot price in November 2020.

Echo Energy continues to sell gas under a combination of secured contracts of up to a year in duration and spot sales and the result of the new contract is that approximately 60% of daily gas production from Santa Cruz Sur, under current market conditions, will be sold under secured contracts at significant premia to the current spot price during Q1 2021. 

KeyFacts Energy: Echo Energy Argentina country profile