Company Announcements

13 October 2022

Echo Energy plc

("Echo" or the "Company")

Result of Bondholder Meeting and Directorate Change

Echo Energy plc, the Latin American focused energy company, is pleased to announce that at the meeting of the holders of the Company's Luxembourg listed EUR 20.0m 8.0% secured notes (the "Notes") held earlier today (the "Noteholder Meeting"), the proposals to restructure the Notes as announced on 5 September 2022 (the "Proposals") were duly passed by the requisite majority with  voting instructions representing EUR 10.5m of the Notes lodged by holders of the Notes, with 66.67 per cent. of votes cast in favour.

The Proposals remain conditional upon the approval by the Company's shareholders at a General Meeting to be held at 2:00 p.m. on 24 October 2022 at the offices of Fieldfisher LLP, 2 Swan Lane, London, EC4R 3TT (the "GM") and should approval be given, €15.0 million of existing debt principal, together with accrued interest thereon, will be converted into new ordinary shares in the Company ("Ordinary Shares") at a 76.4 per cent. premium to the closing mid-market price per Ordinary Share on 12 October 2022:

·    50% of the outstanding principal amount of the Notes (an amount of €10.0 million), together with accrued interest thereon, will be converted into new Ordinary Shares at a price of 0.45 pence per Ordinary Share;

·    Interest on remaining Notes reduced to 2% per annum on any interest accruing from 30 September 2022;

·    Note maturity will be extended to 15 May 2032; and

·    €5.0 million 8.0% secured convertible debt facility and remaining accrued interest will be converted in full into new Ordinary Shares at a price of 0.45 pence per Ordinary Share on the terms announced by the Company on 12 August 2022.

Directorate Change

Following the successful outcome at today's Noteholder Meeting, Marco Fumagalli, Non-Executive Director, has informed the Company of his intention to step down from the Board on 13 January 2023.

Martin Hull, Echo's Chief Executive Officer, commented:
"This is a very significant moment for Echo Energy. It marks the successful culmination of efforts over recent years to restructure the balance sheet and overcome the financial constraints that have been holding the company back. We are delighted to have progressed the process and are very grateful for the support of our noteholders, and of course shareholders.

The restructuring combined with our strategy to grow production in Santa Cruz and the ongoing delivery against these goals demonstrates the tangible progress Echo is making.  We will continue to focus on delivering on our operational and commercial goals and unlock Echo's full potential.'"

James Parsons, Chairman, commented:
"Today is a red-letter day for the Company.  We are delighted that the lenders have agreed to pass the proposals to restructure the bonds.

Marco has been instrumental to Echo's progress for many years and has also played a key role recently in mustering noteholder support to the changes announced today.  We thank him for his contribution and wish him well as he moves onto other future endeavours."

For further information please contact:

Certain of the information contained within this announcement is deemed by the Company to constitute inside information as stipulated under The Market Abuse Regulation (EU 596/2014) pursuant to the Market Abuse (Amendment) (EU Exit) Regulations 2018. Upon the publication of this announcement via a Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.