Energy Voice | Echo shares sink 16% after latest fundraiser

Shares in Echo Energy took a dive this morning after the South American oil explorer said it had issued 71.2 million shares.

London-headquartered Echo said the placing would raise £8.5 million to help it commission a seismic shoot in Argentina more quickly.

Echo said committing to the seismic programme on Tapi Aike now would save it £5.2m, due to the lower rates currently on offer.

Shares sank 15.86% to 12.2p in early trading in London.

 Since the company’s acquisition of its Argentinian portfolio and re-admission to AIM in January, Echo has initiated a busy Argentinian work programme, including the workover of three existing wells at Fracción D.

It has also commenced a back-to-back four exploration well drilling campaign at Fracción C and Laguna Los Capones.

Drilling of the first exploration well at Fracción C, ELM-1004, has been completed.




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