Echo Energy, the Latin American focused upstream oil and gas company, announces that, as a result of additional demand following the Company's fundraising announced on 1 December 2020, the Company has raised additional gross proceeds of GBP856,000 through the issue of 167,843,138 new ordinary shares (the 'Subscription Shares') at 0.51 pence per share with warrants attached to new investors pursuant to a direct subscription with the Company (the 'Subscription'), conditional on admission of the Subscription Shares to trading on AIM.

The Company also provides an update in respect of its option to re-acquire a 19% participating interest in the Tapi Aike asset.

The Subscription Shares will, when issued, rank pari passu in all respects with the Company's existing ordinary shares of 0.25 pence each ('Ordinary Shares') and application will be made for the Subscription Shares to be admitted to trading on AIM ('Admission'). Admission is expected to take place on or around 8.00 a.m. on 11 January 2021.

The net proceeds of the Subscription of approximately GBP800,000 will add to the Company's working capital resources and be applied towards a range of near term growth projects within the existing portfolio designed to deliver production uplift in response to improved market conditions. This will serve as a platform for cash generation to underpin future growth, both strengthening the Company's balance sheet and also providing support for Echo to pursue value accretive transactions.

With the Subscription Shares issued with warrants to subscribe for new Ordinary Shares attached, the Company has also conditionally issued 167,843,138 warrants to subscribe for new Ordinary Shares at any time until the second anniversary of issue (the 'Subscription Warrants'). 83,921,569 of the Subscription Warrants are exerciseable at 0.7 pence per new Ordinary Share and 83,921,569 of the Subscription Price are exerciseable at 0.75 pence per new Ordinary Share. Whilst 50% of the Subscription Warrants have been conditionally issued subject to Admission, the issue of the remaining 50% of the Subscription Warrants will be subject to receipt of necessary share issuance authorities at the Company's 2021 annual general meeting.

Tapi Aike Option

On 16 July 2020 the Company announced the terms of an option pursuant to which Echo has had the right to re-acquire a 19% participating interest in the Taki Aike exploration asset, onshore Argentina (the 'Option').

The Company announces that on 22 December 2020 it received notification from the operator of the Tapi Aike asset that, should the drilling of the next exploration well in the Tapi Aike Western Cube drill programme begin on its intended commencement date in Q1 2021, the Option is now no longer capable of exercise and will lapse. The decision by the Company to allow the Option to lapse is inkeeping with Echo's ongoing focus on high impact cash generative production and on the identified and lower risk potential upside in the Santa Cruz Sur portfolio.

Contact:

Martin Hull

Tel: +44 (0) 20 7390 0230

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