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Echo Energy PLC (LON: ECHO) shares edged 6.78% higher after revealing that crude oil production at its Campo Molino oil field at Santa Cruz Sur had increased after three more wells entered production.
The oil company noted that production had hit a high of 350 barrels of oil daily, representing a 20% jump to the figures reported on 26th August in its last operations update.
The firm revealed that it was focused on producing and selling the highest oil blends that fetch higher prices in the market. The strategy worked exceptionally well for the company, generating higher revenues per barrel of crude oil sold.
Echo Energy noted that the net average daily production in September was 290 barrels of oil, an almost 50% increase in the total daily production compared to the period immediately before restoring full output at Santa Cruz Sur.
The energy firm informed investors that it would continue managing the production at Santa Cruz Sur over the short term to maximise higher quality oil blends in line with its strategy.
Martin Hull, Echo Energy’s CEO, commented: “The work we have done in recent months has borne fruit, and we are now seeing materially higher prices for our higher-quality blend. This, coupled with increased production levels from the reactivated wells at Campo Molino, means we are seeing stronger cashflows as we head towards the end of the year.”
From a technical perspective, Echo Energy shares are trading at the lower end of a wide trading range, which could trigger a rally in future based on solid fundamental triggers.
However, the stock might need significant momentum to rally higher, given that it has been consolidating since early June. Still, aggressive traders might find the current prices quite attractive.
*This is not investment advice.
Echo Energy share price.
Echo Energy shares edged 6.78% higher to trade at 0.63p, rising from Monday’s closing price of 0.59p.
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