Echo Energy Plc (LON:ECHO) is raising £8.5mln of new capital though a share placing and subscription as it plans to accelerate its operations in Argentina.
It is issuing 71.18mln new shares, priced at 12p each.
WATCH: Echo Energy hails gas discovery at Fracción C asset in Argentina
The company, in a statement, highlighted the success of its programmes in Argentina to date. It has completed work-overs on three existing wells at the Fracción D project, and, has successfully drilled the first of four exploration wells at Fracción C and Laguna Los Capones.
Echo highlighted that following the successes and given attractive contractor rates it is bringing forward a planned 2,000 square kilometre seismic campaign for the Tapi Aike exploration area.
In the present climate, the company expects the seismic will cost around US$7mln and it believes the placing proceeds will be sufficient to complete the programme.