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Shares of Echo Energy PLC (LON: ECHO) surged 21.5% today after the company secured a new lucrative contract with a major gas customer at a premium to current market prices.

The company is set to supply approximately 1.8 MMscf/d of natural gas priced at a rate of $2.00 per MMBtu, representing a substantial premium to prevailing spot market prices with the contract set to last for four months up to April 2021.

Echo Energy is an upstream oil and gas company with operations in Latin America. It will supply the customer with gas from its Santa Cruz Sur onshore assets located in Argentina.

The company sells its gas via a combination of secured contracts of up to a year in duration and spot sales with the new contract covering up to 60% of the daily production at Santa Cruz Sur.

Echo Energy share price

Tradingview chart of Echo share price 17122020

Echo Energy shares today surged 21.5% to trade at 0.524p having rallied from Wednesday’s closing price of 0.431p.

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