Echo Energy Share Discussion Threads

[bushman1] 18/1/2018 07:53

Ah ! We're ahead of our time out here in the Desert :). In one weeks' time then.....

[bushman1] 17/1/2018 21:03

A request from the Eastern Desert ! Could any posters on this bulletin board attending the ECHO presentation at the Ritz please post an update later on any Q & A session with the CEO and or board ? Many thanks.

[steelwatch] 15/1/2018 17:15

@echoenergyplc

Hear more about the transformational Argentinian deal when Echo CEO Fiona MacAulay presents on Thursday, January 25th, 6pm at The Ritz,
150 Piccadilly, London. To register click here:

[steelwatch] 13/1/2018 13:34

Courtesy of

[ch1rp] 11/1/2018 08:22

I thought Argentina had become a solid financial base off late with massive investment potential??

[steelwatch] 10/1/2018 17:25

Thanks nap :)

[napoleon 14th] 10/1/2018 17:03

From Progressive Equity Research, 10/01/2018


Page 5 - SWOT Analysis
Strengths
The major strength is that this deal gives the company a significant entry into Argentina at a low upfront cost and provides a very substantial increase in its asset base. These assets offer an exciting mix of current production, discoveries, as well as significant exploration potential upside in an overlooked but proven hydrocarbon basin to provide investors with an exciting risk/reward profile. Having achieved a critical mass with this asset base, management now has the ability to start to build up this business both organically and through acquisition, with its ambition to becoming a Latin American gas champion. The other advantage with this deal is that CGC, Echo Energy’s partner, is very strong operationally and politically in Argentina. This will enable Echo Energy to accelerate its
new country learning curve and hence punch above its weight.

Weaknesses
The major weakness with this deal is that the company has committed to a significant level of expenditure in order to acquire a 50% working interest in these licences. Not only is the company having to spend its share of expenditure, it is also carrying CGC for a large proportion of its spend. As with any E & P company, lack of success with the drill-bit will therefore erode shareholder value.

Opportunities
The main opportunity for the company is in the exploration upside that is available in the licences that it is farming into. Success with the drill-bit should allow a significant increase in the group’s reserve base and hence potential valuation. Investors should be aware that exploration is a high-risk activity. However, this portfolio provides a blend of lower risk from Fracción C & D to higher risk in the Tapi Aike licence. The company has established a significant portfolio of acreage in a prolific oil and gas basin. Having established this initial position in the country, it provides a springboard for adding to this asset base.

Threats
Perhaps the main threat to the business comes from the operating environment – this
comes from the political regime as well as the macro commodity environment. Weakness
in the oil and gas prices could lead to lower cash flow from its current production as well as putting pressure on the economics of any discovery that might be made. The assets that the group has are predominantly based in Argentina (and to a lesser extent Bolivia).
Argentina has proved to be very volatile both economically and politically. This has led to large swings in economic activity, inflation and currencies. These could create significant headwinds for the company’s operations. The outlook has improved significantly with the new Macri government, where there have been a series of reforms designed to promote economic growth and stability.
There are also some other risks that are highlighted in the admission document. There is the risk that the consents required to transfer the licences will not be obtained at the time of the completion of the acquisition. However, the company will still retain an economic interest in these until the consent of obtained. GCA also notes that its resource estimates might change materially on the result of drilling and testing after the preparation of the CPR

[junglee] 05/1/2018 13:37

Thanks, Bushman. That is interesting. 'hope it will be different this time.

[bushman1] 05/1/2018 07:39

Junglee, many thanks. The last analyst who wrote about ECHO was Ashley Kelty of Cenkos Securities ~ before the board changes ~ who wasn't too complimentary..

It will be interesting to read Malcy's blog later today, hopefully well bullish.

[junglee] 04/1/2018 22:17

Bushman, name of analyst was not disclosed. I wonder if it is Shore capital who are their joint brokers. Company received net 4.7m from 6.4m raised. That means 1.7m, more than 25%, has gone to various consultants, brokers and advisors. I think that is very high figure and they better perform! As steelwatch says, malcy is writing something tomorrow. Plus Fiona, a very effective and credible communicator, is active on interview/promotion circuit. Price has already started its move up. High probability that offer would proceed at 17.5, come end of the month. It may look very cheap by end of the year!

[steelwatch] 04/1/2018 17:09

Chartist view from about 5:34 in:



fwiw

[steelwatch] 04/1/2018 15:46

From Malcy today:

Echo Energy
All successfully passed at the General Meeting yesterday and the shares behaving well this morning. I am speaking to CEO Fiona MacAulay later so will add tomorrow.

[ch1rp] 04/1/2018 14:07

How can me the price goes up but the numbers stay red?

[steelwatch] 04/1/2018 13:24

Much to play for here westie. Also SOUs 1 & 3 !!

[westmoreland lad] 04/1/2018 13:09

Well you did tell me via pony headed Opportunity Knocks!!

ATB

edit - PS -- Happy New Year Soulsauce

[steelwatch] 04/1/2018 12:47

westie - free ride here ;-)

[westmoreland lad] 04/1/2018 12:26

Steelwatch in the money again ?

[steelwatch] 04/1/2018 12:20

Echo Energy plc
‏


@echoenergyplc
3s

More
Echo delighted to confirm the completion of our transaction in Argentina and re-admission to aim today. …

[bigdazzler] 04/1/2018 11:30

Let’s see this little beaut start to motor upwards over next few months.

[moonwizz] 04/1/2018 10:58

RTO is completed so old ECHO no longer exists due to reverse take over, buyers moving in again to buy into new company

[ram6ler] 04/1/2018 10:53

it looks to be just the two parties involved who have been suspended from trading

[steelwatch] 04/1/2018 10:37

Ah! Apols. Only on mobile access at the mo and jumped to wrong interpretation.