LONDON (ShareCast) - (ShareCast News) - Echo Energy issued an update to the market on Thursday, saying that further to its announcement on 18 April, and consistent with its strategy to build a Latin America exploration business, it could confirm that it had now sold its legacy Egyptian business.
The AIM-traded company said it entered into an agreement to sell its 25% effective working interest in its Egyptian East Ghazalat licence to its joint venture partner Nostra Terra.

It said the sale was for a total consideration of $500,000, split into three tranches.

An immediate payment of $100,000 is payable when the Egyptian General Petroleum Corporation approves the registration of any member of the buyer's group as a party to the concession.

"The balance of the consideration is payable in two tranches triggered upon achievement of two performance milestones, namely production of 800 bopd from the area for 30 consecutive days and production of 1,000 bopd from the area for 30 consecutive days," the board explained in its statement.

"The consideration is payable in either cash or shares."

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