Excitement is building about where Echo EnergyPLC (LON:ECHO), the latest vehicle of the team behind the success story that is Sound Energy PLC (LON:SOU), is going to start to invest some of the £26mln it has raised.
Oil commentator Malcolm Graham-Wood has spoken to the management team recently and expects action soon, he tells Proactive.
“Word is they are quite close to a first major acquisition but two or three may be in the pipeline as these people don’t let grass grow under their feet.”
Gas in South America will be the target, he said, with Brazil, Bolivia and Colombia the most likely places for a deal.
“South America is very exciting for gas. The infrastructure is in place. A number of players have exited in last few years and Echo can build quickly by taking on these licences.”
To speed up the process, Graham-Wood also suggests Echo may take a stake in assets or companies with an on-the-ground team in place already and he expects interesting senior managerial appointments to follow once the deals start to be done.
Eventually, and once it gets to a decent size, Graham-Wood can see Echo being taken over by a major.