Echo Energy has been forced to suspend its shares as it is in talks regarding a possible reverse takeover.
The South and Central American focused upstream gas company responded to speculation after the recent share price movement and confirmsed that it is in discussions in relation to a potential farm in into certain onshore oil and gas assets in South America.
A spokesperson added: “By virtue of its size, the proposed transaction would constitute a reverse takeover under Rule 14 of the AIM Rules for Companies. Accordingly, the Company’s ordinary shares will be suspended from trading on AIM with effect from 07:30 today, pending publication of an AIM admission document and circular to shareholders to approve the proposed transaction or an announcement that the proposed transaction has been terminated.”
Echo Energy is pursuing a high value piped onshore gas strategy across South and Central America, which commences with a Multi Tcf potential exploration portfolio.