WTI (Jan) $81.22 +67c, Brent (Feb) $86.88 -9c, Diff -$5.66 -76cm, USNG (Jan) $6.73 -20c, UKNG (Jan) 348.0p -57.0p, TTF €129.5 -€26.9

Oil price

Oil is up on the week ahead of the Opec+ meeting on Sunday and the Russian crude ban/price cap on Monday when sanctions will begin. Combine this with yet another story from China that the ‘magic weapon’ of total eradication of Covid is being let go, albeit slowly. Elderly and vulnerable people will not all be treated but quarantine at home….

There is beginning to be a feeling that the UK Government may have gone just one step too far in its latest update of the Looney Tax. Total has said that has started cutting back investment in the UK post the increase in the EPL which will hit the Elgin field to start with. Other majors are reported to be following suit.

Echo Energy

Echo has announced that in respect of completion of the restructuring of the Company’s Luxembourg listed EUR 20.0m 8.0% secured notes and the Company’s 5.0 million 8.0% secured convertible debt facility, it has today made application for 3,570,766,386 new ordinary shares in the Company to be admitted to trading on AIM. The New Ordinary Shares will rank pari passu with the Company’s existing ordinary shares and it is expected that Admission will occur at 8.00 a.m. on 8 December 2022.

As a result, the restructuring of the Notes and the Facility first announced by the Company on 12 August 2022 and subsequently approved by Echo shareholders and holders of the Notes will complete on Admission, with an aggregate of €15.0 million of debt principal, together with accrued interest thereon having been converted into the New Ordinary Shares.

Following Admission, the Company’s issued ordinary share capital will comprise 5,527,427,674 ordinary shares, none of which are held in treasury. Therefore the total number of ordinary Shares with voting rights in Echo following Admission will be 5,527,427,674.

The above figure of 5,527,427,674 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in or a change to their interest in the Company under the FCA’s Disclosure Guidance and Transparency Rules.

Martin Hull, Echo’s Chief Executive Officer, commented:
“Completion of the restructuring of the Company’s balance sheet is a very significant and positive milestone for Echo Energy. I would like to thank our note and debt holders, and of course Echo’s shareholders, for their continued support.

With our ambitious strategy to increase production and value in Santa Cruz sur, we remain focused on delivering on our operational and commercial goals.”

Confirmation of the news that Echo is completing the long-awaited restructuring of its balance sheet is good news indeed although the dilution will make the eyes water. It is good to see the return of CEO Martin Hull to the RNS and that he remains bullish is appropriate.

KeyFacts Energy Industry Directory: Malcy's Blog