Echo Energy benefits from rising gas prices, but production remains below pre-pandemic levels – Product Commentary

By Jaime Llinares Taboada

Echo Energy PLC on Thursday reported a loss for the first half of the year despite significantly higher gas prices during the period. Here’s what the Latin American-focused oil and gas company had to say.

About the rates:

“High domestic gas prices have supported improved cash flow generation with a 28% increase in gas prices compared to the same period a year ago, with premium gas prices only coming into effect. during the last two months of the period. “

“In May 2021, the company sold gas on the spot market at an average price representing a 151% price increase over the average spot price in March 2021.”

“All gas production, as of May 2021, has been sold under the new gas sales agreements, reflecting a significant increase in winter prices.”

“Oil prices realized in H1 2021 were on average 21% higher over the period than in H1 2020.”

Manufacturing :

“While overall production, including gas, remains below pre-pandemic levels, the company continues to work on improving production by undertaking the necessary operational activities and investments. “

“In the second quarter, increased production of liquids represented the fulfillment of the Company’s strategy to take advantage of the sharp rise in global commodity prices.

“Total aggregate net production for the first half of 2021 of 304,639 boe (including 37,159 barrels of oil and condensate and 1,605 MMscf of gas).”

Write to Jaime Llinares Taboada at [email protected]; @JaimeLlinaresT

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