It means that agreements are in place to restructure all of the company’s existing debts to defer all cash interest payments until March 2021.
Previously during the week, Echo had revealed that its cash flows are being bolstered at a key time, confirming that its production has continued uninterrupted amid the coronavirus (COVID-19) pandemic and remains in-line with expectations.
In a statement on its operations, Echo said that net production averaged 2,250 barrels oil equivalent (boe) per day or 310,474 boe in aggregate in 2020 to date. At the same time it noted changes by the Argentinian government for domestic oil price support, and reiterated that it is assessing the extent of the positive impact for the group’s Santa Cruz Sur assets.
88 Energy Ltd on Thursday suggested that there is still life in the Charlie project in Alaska as it provided a technical update on its view of the exploration disappointment following the departure of former partner Premier Oil PLC (LON:PMO).
In an operations update, the AIM and ASX-listed explorer – which is in the process of rebooting via a merger with Alaska peer XCD Energy – among other details highlighted what it called “compelling” indications of oil in an up-dip location from the Charlie well location.
Moreover, it commented that it had originally planned to drill the Charlie well somewhere else before Premier Oil joined the exploration campaign.
A day earlier, 88 Energy’s takeover target XCD Energy Limited (ASX:XCD) released a resource upgrade for its Project Peregrine asset, located on Alaska’s North Slope. Consultant ERC Equipoise (ERCE) outlined 1.63bn barrels of mean prospective resources across three targets – Merlin, Harrier, and Harrier Deep.
In a statement, DGOC’s chief executive Rusty Hutson described the promotion from AIM as “a significant milestone” showing the company’s growth over the past three years. Importantly it reflects our commitment to the strong governance, reporting and operating standards required by a Premium listing.”
SDX Energy PLC (LON:SDX) this week described the first quarter of 2020 as a positive period despite a challenging backdrop amid low oil prices and the coronavirus pandemic. In an update, SDX said its entitlement production for the first quarter amounted to 8,061 barrels oil equivalent (boe), up 117% compared to the comparative period in 2019, while gross production equated to 4,994 boe per day.
The strong year-on-year production growth was driven by the South Disouq in Egypt which performed ahead of expectations, it added.
Jersey Oil & Gas PLC (LON:JOG) this week completed the process to re-acquire Equinor’s stake in Licence P2170, in the North Sea, which is host the Verbier discovery. In return, Equinor receives two milestone payments and a royalty based on volumes produced from the Verbier Upper Jurassic (J62-J64) reservoir.
It is one step in the consolidation of multiple valuable but modest discoveries into a hub development project, to be known as the Greater Buchan Area (GBA) project.
On Tuesday, Aminex PLC (LON:AEX) revealed it is set to complete its pivotal farm-out transaction as the Tanzanian authorities have now issued a Tax Clearance Certificate, following the payment of a capital gains tax bill.
It means that Aminex and new partner ARA Petroleum have satisfied all requirements for the government to approve the transfer of a 50% interest in the Ruvuma PSA.
“This is a major milestone. With the receipt of the Tax Clearance Certificate from the TRA and with the onward submission to the TPDC, Aminex has now accomplished all of the conditions within our control in order to complete the Ruvuma farm-out,” Robert Ambrose, Aminex chief executive said in a statement. Earlier this month, the company announced that new partner ARA would advance a US$2mln loan to pay a tax in Tanzania so that the farm-out transaction can complete.
And Mosman Oil And Gas Ltd (LON:MSMN) announced a deal to sell its stake in the Welch oil field in Texas, for US$300,000. It has received a US$30,000 deposit and the balance will be paid within 30 days. It said proceeds raised through the sale will facilitate investment in its Stanley project and provide working capital, supporting the company whilst oil prices remain low.
Welch is producing and has development potential but Mosman noted that a prior ranking exercise determined that the Stanley and Greater Stanley projects offer “better growth”.