Interoil Exploration and Production ASA (OB : IOX) and Selva María Oil S.A. entered into binding term sheet to acquire five exploitation concessions located in the Province of Santa Cruz, Argentina from Echo Energy Plc for £1.725 million.

Interoil Exploration and Production ASA (OB : IOX) and Selva María Oil S.A. entered into binding term sheet to acquire five exploitation concessions located in the Province of Santa Cruz, Argentina from Echo Energy Plc for £1.725 million on May 9, 2023. A cash consideration of an upfront payment of £0.075 million upon execution of the transaction documents and the balance of £0.75 million payable at Completion. A payment in kind of £0.4 million via transfer to Sellers of IOX shares at a subscription price of 1.15 NOK per share, to be made upon Completion.

An additional contingent payment of up to £0.5 million. The transaction is subject to approval of Echo Energy's shareholders. As of May 26, 2023, The agreement has signed.

The board of Echo Energy has requested shareholder approval for the partial sale of its Santa Cruz Sur assets. Ben Jeynes and Adrian Hadden of Cenkos Securities plc (AIM:CNKS) acted as financial advisor to Echo Energy.