Echo Energy Share Discussion Threads

[terminator101] 07/5/2021 11:37

Break even by the end of 2012, hilarious. You only have to look at the waffle they come up with in the report about being positive for cash on operations to understand that they are set for another loss making year again.

[helpfull] 07/5/2021 08:54

Echo cannot afford to pay interest on the debt. Debt will increase by €2,000,000 every year. In 3 years time that would make it €31,000,000+. The revenues are more than matched by cost of sales and administration costs. Administration costs for H1 2020 were $1,480,136. Administration costs for yr 2020 were $3,240,934. Administration costs for H2 2020 were $1,760,798. That's a rise of 19% in administration costs from H1 to H2. These costs include BOD remuneration. They will not be coming down anytime soon. Be careful.

[peterdonovan] 07/5/2021 08:35

Strong buy tbh we are on the up turn now price target 2-3p this year would have been 2p if it wasn't for lombard shorting tbh

[sky24] 07/5/2021 08:29

I have been trying to figure out what they may have for revenue in 2021.It's a difficult one,but I think it could be approx $15 mln,and it depends on the price of oil and gas staying up through this year. If they do that much for the next 4 years they will have brought in $60 mln,so paying the debt won't be a problem.I think they could break even by the end of 2021. At the end of 2019,debt was 29 mln,and at the end of 2020 it was 20 mln,so they are reducing it slowly.

[terminator101] 07/5/2021 07:50

Only 20 million pounds in losses. Well that makes it ok then. Hilarious. Why did they not publish the Directors salaries in this years report? Is that because they have awarded themselves massive pay rises for such an amazing performance?

[biuedolphine] 06/5/2021 22:10

Annual Report stated in US$ so loss more like £20 m @ USD/GBP @ current exchange rate c.$1.38.

[terminator101] 06/5/2021 13:28

How can you see those accounts as good? All they do is expose the stench of this outfit and how deep the loss making goes. They are running out of cash, have put off debt to the future (so pay now and pay later) and the best waffle you have from them is something about being cash positive on sales. Hilarious. £27 million losses huh.

[cookalot] 06/5/2021 12:40

Agree sky and as production is opened up again with the increasing oil price this should do well.

[helpfull] 06/5/2021 11:43

Cash,cash,cash! I must have a faulty set of Echo Energy results for 2020 because it doesn't appear to mention the 3 cash raises during the year. 27th July 2020 £475,000 gross 1st Dec 2020 £700,000 gross 22nd Dec 2020 £856,000 gross Cash at end of June 2020 was $1,200,000. Add on the £475,000 cash raised in July 2020 at £1=$1.25 or $593,000 and that gives $1,793,000. In the Dec 1st 2020 RNS cash was given as $655,000 on 17th Nov 2020. That's a cash burn of $1,138,000 in 4.5 months. On 1st Dec 2020, £700,000 was raised and at £1=$1.35 gives $945,000. Add this to the 17th Nov 2020 cash figure of $655,000 to give $1,600,000. The year end cash figure is $682,159. A cash burn of $917,841 in 1.5 months. Where has the money gone? The shares from the 1st Dec 2020 cash raise were issued on the 4th Dec 2020 so the cash was received in 2020. The second Dec 2020 cash raise of £856,000 or about $1,155,600 might have come post year end as the shares were issued on 11th Jan 2021. Needs clarifying. But the burn rate of cash is staggering and will have gone on post year end. I thought the second cash raise in Dec 2020 was just the company " making hay while the sun shined" but the results show it was absolutely necessary. Post year end there have been monthly payments of about $42,700 to cover Echo's share of the $2,200,000 compressor loan. At the end of March 2021, £100,000 was due to be repaid as first instalment on the £1,000,000 loan. Followed by £50,000 every 3 months until £1,000,000 is due in March 2022. And isn't $250,000 due towards pipeline upgrade? Cash, cash,cash! Be careful.

[sky24] 06/5/2021 09:18

These are good results - people not interpreting the information properly.

[helpfull] 06/5/2021 07:43

What's the cash position? Two cash raises in December 2020. £1,500,000 raised. How much at year end? Too scared to look? Burning shareholder value. It's only your money. Things haven't improved much in H1 2021. Oil production still struggling. Cash is being used up rapidly. Can another cash raise be imminent? Problems, problems, problems. Be careful.

[terminator101] 06/5/2021 07:11

Wow, over £27 million in losses. Boy that takes some doing huh. Its a shocker Surprised they don't mention that at all in the 'highlights' Wonder why

[helpfull] 30/4/2021 10:12

Campo Limite? Another RNS from President Energy outlining their drilling and commercialisation success in Argentina. They even outline the potential rewards. How long is it since the start of the wait announced by Echo Energy? It must be a different Argentina. Some people just seem to have the wherewithal to get things done. Of course the problems for Echo Energy and Campo Limite are special. Aren't they always? Perhaps they should ask for help? Be careful. https://www.investegate.co.uk/president-energy-plc--ppc-/rns/operations-update/202104300745052022X/

[terminator101] 28/4/2021 13:09

The crew are getting back in again. Time to pump and dump. #rinseandrepeat

[oilbuy] 28/4/2021 09:11

Based on your posting here, you are finished.Must have lost a fortune or else never became successfulOr you are shorting Or you are a paid deramper.Either way Martin Hull has created a base to grow an oil company in a rising oil price environmentBy christmas we will be at 3000boepd and POO is heading above $80Your an expert at spouting figures and probably an accountant and this profession make the worst business leaders because of their conservative nature , similar to bankers. Good side kicks but not business leaders !

[helpfull] 28/4/2021 08:57

Will Campo Limite ever be finished? A year or so mysteriously on the back burner. Of course there are excuses as to why there is no progress in Argentina. But some companies manage to prosper and continue to drill without a fuss. President Energy(PPC) being a good example: https://www.investegate.co.uk/president-energy-plc--ppc-/rns/operations-update/202104280700027669W/ And they even outline the way forward. Of course the problems for Echo Energy and Campo Limite are special. Aren't they always? Perhaps they should ask for help? Be careful.

[terminator101] 26/4/2021 17:35

https://twitter.com/darrenukdaytra1/status/1386547300466577413?s=21 Broke through support. Next step fill that gap on the down side.

[billthebank] 22/4/2021 09:51

You have a lot of input on here and is full of information which is great thanks.I have to say it is all very negative. What price have you invested in if you dont mind me asking. What positives made you invest initially and what do you think is a reasonable value to buy back in?

[loverooster69] 20/4/2021 14:02

Thanks H! Well, I guess we'll find out soon enough, H1 results can't be round the corner...

[helpfull] 20/4/2021 12:54

As oil, the same applies to gas. In Q1 2021, 809 mmscf of gas were produced. About 9 mmscf per day. So for Q2, 818 mmscf can be expected. A total of 1,627 mmscf. In H1 2020 1,954 MMscf gas were produced. A fall of about 17% is to be expected. In the H1 2020 results investors were told " monthly volume weighted average gas prices for the period to 30 June 2020 ranged from US$2.10-US$2.77/mmbtu". This H1 any rise in gas prices will be accounted for by a fall in production. The same gas revenues as H1 2020 can be expected. So total revenue will be similar at US$5.6 million (of which US$3.5 million related to gas sales and US$2.1 million related to oil sales).

[loverooster69] 20/4/2021 11:52

Thanks Helpfull, that makes sense. Do you think there will be any merrit at all to the claimed increase price on gas? quote: For the committed production over the key southern winter period (May to September), the Company will sell natural gas at an average price of $3.52 per mmbtu, which compares to $1.35 per mmbtu for industrial clients the previous year. Best regards, LR

[helpfull] 20/4/2021 11:38

I'm sorry but I only wrote about barrels of oil. 152,603 refers to barrel of oil equivalents. This is oil and gas output combined. It is not valued the same as a barrel of oil. My figures are simply barrels of oil. Gas needs to be valued separately. I suspect gas revenue will be the same as H1 2020.

[loverooster69] 20/4/2021 11:27

Helpfull, very insightful posts, thanks for your input. You mention H121 revenue of USD 2.1m. The update yesterday mentioned 152,673 boe net to Echo - meaning roughly USD 7.9m revenue per quarter, net to Echo I'm assuming. Is this incorrect? Genuine question, thanks in advance for your response. Best regards, LR

[helpfull] 20/4/2021 10:40

The Operational update yesterday gives an indication of oil production numbers for H1 2021. 17,814 bbls of oil and condensate for the first three months of the year. By great effort Echo Energy has managed to increase daily net production to 230 bbls/d. For Q2 2021 that would give another 20,930 bbls of oil. In total that would be 38,744 bbls of oil for H1 2021. Compare that to 65,203 bbls of oil and condensate for H1 2020. Would that be a drop of 40%? Remember in March 2020 oil prices fell off a cliff due to Covid-19. Oil prices realised averaged US$34.7/bbl during H1 2020. Luckily this year prices are recovering to $60-65. Realised price for Echo will be lower, let's say around $52 per barrel. That would give revenue for H1 2021 little changed from H1 2020. About US$2.1 million. The rise in oil price will be swallowed by the drop in production. Be careful.