Echo Energy Share Discussion Threads

[soulsauce] 04/1/2018 10:10

No it's not steelwatch, just a regulatory announcement. You can buy and sell no problem.

[steelwatch] 04/1/2018 10:00

Suspended pending RTO.

[bushman1] 04/1/2018 04:08

Junglee, many thanks for your post. Are you aware as to who the Analyst will be ?

[caters] 04/1/2018 00:09

Thought i'd post on this thread rather than the main one.....

I've just spent an age reading though the various RNSs.

What struck me was how happy the BoD are to issue in-the-money options to themselves.

There were 56,000,000 options in issue before the 24,000,000 issued to the new CEO and 6,000,000 to various Echo staff.

In addition, there's a boat load of warrants outstanding - these have fairly favourable conversion terms.

Then there's a load of debt (loan notes) tradeable on the Luxembourg exchange. This always leaves companies exposed to hedging and smart trades (sell the share, buy the debt) that suppresses the shareprice.

The market cap is about £70m, there is some revenue from gas but the carry on further exploration looks quite expensive and throws all the exploration risk to ECHO rather than to CGC, the partner (certain 100% for the LLC concessions - it's 65% for the TA exploration.)

Overall, it looks interesting but too many options/warrants, too much risk of more placings when money starts to dry up IF production doesn't come on line fast enough and then there's the country risk and partner risk.

In its favour, if the subsurface work is done well by Echo - and it probably will be - then the drill costs aren't heavy so it could be quick to monetise the new production and cash flow does get positive quickly.

But because of the risks and the fully diluted position, it would only be a small punt for me.

Good luck those who do go for it.

[soulsauce] 03/1/2018 16:19

Good news added.

[junglee] 03/1/2018 16:10

placing done at 17.5. Open offer presumably will not be done at less than 17.5 but at 17.5 if the market price exceeds that by 31 Jan. Meanwhile an Analyst Report is coming out shortly (in Jan) as confirmed at Q&A session. IMHO, that will be bullish with a high target price which would get this price in 18-20 range or more (as I guessed in my earlier post) so that the offer could proceed.

[steelwatch] 03/1/2018 16:03

All's well.

"Intended Open Offer

The Company also wishes to provide an update on the previously announced intended Open Offer, intended to be launched in January 2018, of up to 11,428,572 Offer Shares at 17.5 pence per Offer Share to raise up to GBP2.0 million, before expenses. The Open Offer was not required by the Company to fund operations but was instead intended to provide qualifying shareholders with the opportunity to subscribe for additional Ordinary Shares at the same price as was available to placees under the Placing.
To avoid unnecessary costs, the Open Offer will only now be launched if, in the opinion of the Directors, the Company's Ordinary Shares trade at a level that supports the Open Offer being made prior to 31 January 2018. "

[bushman1] 03/1/2018 14:00

Could anyone attending the GM and reading this post please update how the meeting has gone ? Many thanks.

[soulsauce] 02/1/2018 16:49

Cheers steel

[steelwatch] 02/1/2018 16:47

Question from BollyR

Will the PI open offer go ahead if the share price remains below 17.5p

Fiona MacAulay (CEO of Echo Energy)

We will make that decision closer to the time

Question from BollyR

Will there be a financial penalty if you decide against it? If it does go ahead is it fully underwritten?
If the underwriter buys the bulk of shares their selling/offloading will cause a huge drag on the share price

Fiona MacAulay (CEO of Echo Energy)

No there will not be a penalty and no it is not underwritten

[bushman1] 02/1/2018 16:32

steelwatch, perhaps not necessarily. If those who have taken positions are comfortable holding at 17.5 p then the open offer will prevail. Both our suggestions are of course conjecture, we'll know tomorrow.

[steelwatch] 02/1/2018 13:12

soul - they will pull the open offer unless the price recovers. No big deal. £2m less fees won't break the bank now and they can come back at a more opportune time if necessary.

[ziblot] 02/1/2018 12:59

Looks like 12p to me.

[soulsauce] 02/1/2018 11:38

So what are they going to do with the Open Offer? 17.5p is not viable now.

[giantpeach2] 28/12/2017 19:24

Malcy does seem to like the story so far, and at this level seems a screeming buy!!

[soulsauce] 28/12/2017 16:25

Taken an initial stake and will buy more as and when some things become clearer. I still don't see how they will get the offer away at 17.5p

Reckon this will be on Malcy's bucket list.

[ch1rp] 22/12/2017 12:42

Merry Christmas and a prosperous 2018.GLA

[eggbaconandbubble] 22/12/2017 11:23

And a Merry Christmas to you and let's hope next year you will be able to afford a gold watch!

[steelwatch] 22/12/2017 10:00

Merry Christmas to one and all and best wishes for a happy and prosperous 2018 🎅

[steelwatch] 21/12/2017 15:45

A transcript of yesterdays Q & A session, warts and all, may be downloaded by clicking the date at the foot of the header above.

[junglee] 20/12/2017 12:26

Indeed, steelwatch. I expect price early Jan to be in the range 18-20 so that the placing/offer is completed satisfactorily. Yes, I can buy lower now (& am buying) but I would take the offer at 17.5 again if it becomes profitable at that time with market price closer to 20. And if Echo is tipped as one of the 2018 shares in one or other publications, then it may well be north of 20p early January. Fiona comes out as very credible & determined person in various interviews. I see excellent prospects. DYOR.

[eggbaconandbubble] 20/12/2017 08:23

So, do I reason correctly that the share price has been forced down so the funds etc. can load up at a price somewhat lower than the 17.5 originally quoted and then have an even greater bonanza as Echo rolls out its plans??

Or am I way off the mark here!

[bostonborn] 20/12/2017 07:42

Surely the Open Offer price will be set in January, just below the current share price at the time it is set. What may vary is then the number of shares created. Or have I got this wrong. At 17.5p no one would take up the offer.