Echo Energy Share Discussion Threads

[peterdonovan] 02/8/2019 12:46

I hope so depressing ?

[bushman1] 02/8/2019 10:58

A big seller. Once sold out plus a good update from ECHO on Tuesday should see this current trend reversed.

[avsome1968] 31/7/2019 14:14

Good questions Bushman

[bushman1] 31/7/2019 13:11

I have three questions for Vigo Communications / ECHO Energy 1. Are ECHO liable for 19 % only of the drilling costs of each of the four wells. CGC being liable under the recent agreement for 81 % ? 2. After paying the 3D seismic for Tapi Aike how much cash is left ? 3. ECHO have long term debt, when is this to be paid ?

[steelwatch] 31/7/2019 12:18

@echoenergyplc
Jul 30

Next Time with the Team will be held on Tuesday 6th August from 12-2pm. To log-in/register: Any issues please e-mail [e-mail].

[bushman1] 30/7/2019 22:16

Of interest. CGC, ECHO ' s Argentinian partner in their Q1 2019 drilling campaign drilled 12 wells with a 91.7 % success rate. Now that 's impressive and bodes well I suggest.

[avsome1968] 29/7/2019 23:05

bushman1

Working Capital
The year on year change in the working capital profile of Echo reflects the move to producing activities, the Company has increased inventory, increasing to US$0.8 million at the year end. The high level of receivables include US$2 million (US $1.7 million ex VAT) in prepayments to our seismic contractor in Argentina. Trade receivables and accrued income from operations are US$1.1 million with advance to the joint account on operations of US$0.7 million. Echo's high level of investment in the period has built-up a VAT and retention tax balance of US$2.8 million.
The current Argentine VAT regime is such that VAT is only recoverable against revenue streams. Argentine legislation to align the treatment of VAT recoverability to international practise is awaiting the enactment of a statutory instrument, once in force this should unlock Echo's VAT position. The trade payables value at year end 2017 was high reflecting the level of accrued costs relating to the acquisition activities that occurred at the beginning of 2018, our current balance recognises our share of the payables of the Argentine joint venture of US$1.2 million.
Whilst the directors remain acutely cost conscious and value focused, the Group recognises that in order to pursue organic and inorganic growth opportunities and fund on-going operations it will require additional funding, this may be sourced through debt finance, joint venture equity or share issues. The cash balance of US$15.6 million will be used to fund the Tapi Aike seismic acquisition programme, progress towards drilling and our other working capital requirements.

So say we have around $15m left to this day 7.9m will go towards 3D seismic $7m left each well be around 2-5 m each so say average $3,5m each well $7m we need minimum to pursue the 4 wells , so we should see some news on additional funding alternatives sooner rather than later, if we can get a joint venture {I think we will] great we will go down dept finance to raise the extra cash needed for the 4 well drill program. If not more dilution with share issues, hope its not the latter.

[bushman1] 29/7/2019 19:54

Avsome, many thanks, my main question if you can perhaps shed some light ?

How will ECHO pay for the drilling of the four wells ?

[avsome1968] 29/7/2019 12:46

Bushman just need to chill wait till next update

Tapi Aike Progress Update
Echo Energy, the Latin American-focused upstream oil and gas company, announces that initial seismic processing of data from the 3D seismic survey conducted over the 414km(2) eastern cube (Chiripa Oeste) at Tapi Aike, its licence in Argentina's Santa Cruz province is now complete.
Analysis on this processed data is currently being conducted by a team of geophysical specialists. Early interpretations highlight a similar amplitude feature that was recognised during the interpretation of the 2D seismic. Current analysis is focused on the geological understanding of the feature identified in the seismic data. This will provide Echo, and its partner and licence operator Compan i a General de Combustibles S.A., further input into prospect generation on the eastern survey as it progresses towards identifying drill locations on the block.
As announced on 19 June 2019, 3D seismic on the western cube (Travesia de Arriba) of 790 km(2) is currently being processed by Seismic Prospect S.R.L in Buenos Aires following the earlier completion of seismic acquisition. Technical work remains on track and an update will be provided to investors in due course.
The continuing positive progression of the seismic programme on schedule represents important steps in the delivery of the exploration campaign targeting the spudding of wells during Q4 2019.
:

[bushman1] 29/7/2019 12:38

Any thoughts on further investing in ECHO nowadays ?

Tapi Aiki being the block ECHO have been focused on for a considerable time.

2 drills Q4 and 2 Q1 2020. Financial situation adequate to see them through the first two drills I'm advised.


Which is better risk / reward mid to long terms : ECHO at 2.8 p or SAVP at 14 p ?

[steelwatch] 03/7/2019 12:22

@echoenergyplc 60 minutes ago

Presentation from investor lunch now available on the web-site: … Further lunches planned please e-mail [e-mail] to register interest.

[cerrito] 30/6/2019 09:57

For the record this weekend's FT had a piece comparing PGR, PPC and Echo.
Useful summary but nothing new.

[avsome1968] 19/6/2019 08:27

Echo Energy plc, the Latin American focused upstream oil and gas company, is pleased to announce the safe and efficient completion of the 3D seismic survey across the western cube on its Tapi Aike licence in Argentina and that processing of the western cube data acquired has now commenced. Equipment is currently being demobilised out of the area by the seismic acquisition contractor UGA Seismic S.A.
The timely completion of seismic acquisition at Tapi Aike prior to the end of H1 2019 is a key operational milestone for the Company and one which ensures that the pathway to drilling Tapi Aike remains on track - with spud currently anticipated to take place in Q4 2019. The Company is working closely with its Argentinian partner, and operator of the Tapi Aike licence, Compan i a General de Combustibles S.A. ("CGC"), to drill early in that window now that the seismic acquisition phase has completed.
Sesimic data acquired is now being processed by respected independent processing houses in Buenos Aires, with the processing of the eastern cube (Chiripa Oeste, 414 sq km) data by Wellfield Services LTDA nearing completion and the processing of western cube (Travesia de Arriba, 790 sq km) data being undertaken by Seismic Prospect S.R.L.
The acquisition and processing of 3D seismic at Tapi Aike builds on the previous interpretation of the large amount of historical 2D data that exists on the block (3,400 line km 2D with average line spacing of 4 km), which is guiding the processing priorities of the new 3D data.
Echo looks forward to updating shareholders in due course, and as appropriate, as it continues to progress towards drilling.

[peterdonovan] 12/6/2019 12:56

https://www.proactiveinvestors.co.uk/companies/amp/news/221960

[giantpeach2] 11/6/2019 18:17

YES THANKS FOR THE FEED BACK.

[joelebeau] 10/6/2019 15:44

Good writeup, thanks for sharing!

[cerrito] 10/6/2019 10:17

A good AGM and too bad there were so few private shareholders- only about 6/7.
Formal part despatched quickly on a show of hands basis.
The spooky thing for me was that only 42m shares voted ie a 9pc turn out. This is not surprising given the shareholder base and just 14pc of the shares held by the 3pc+ holders. Indeed it would appear that the Pegasus Alternative Fund did not vote their shares.
To me this reliance on private shareholders is a major Achilles heel of the company.
All resolutions passed 90 pc+ but given the nature of those who voted that does not tell us much.
A video which will be on the website shown , presentation and q&a with Hall, who for me came over very well. Directors hung around after the meeting.
The big picture is that we will learn nothing much in the next 2/3 months but the picture will be clearer by end September. They will have given the chapter and verse of the TA seismic results and will have further info on the exact drilling programme; the panorama for the Federal elections due on October 27 will be clearer and we should have a decision on Bolivia.
Alot of focus on their cash requirements in light of the new arrangement with CGC which personally I think is very favourable to Echo. The total cost of the four wells is currently estimated to be US 20/25m ie the Echo share US4/5m compared to the original US 13 m+.
They would not give specifics on how their cash requirements for the Seismic have reduced as a result of the new agreement, which took effect May 1; the total seismic spend will be US8m or the original amount for Echo would have been US5m. If we say the seismic costs for the smaller (at 482) and shallower East were say US3 m; that was done pre May 1 so the Echo spend would have been US2m. If you say half of the west was done by May 1, that would imply US2.5m at a 65% share for Echo and US2.5m at 19% share-a total cost for the West to Echo of approx. US2m compared to US3m under the previous arrangement.
Another advantage of this new deal is that there will not be now the situation where CGC were betting with Echo’s money.
It does of course mean that as Echo’s voting power will be reduced and that they will have to be more persuasive to get the outcome they want.
Hall emphasized more than once that they want to be very careful and not be rushed in the drilling decisions they take on TA but clear that they are concerned that they will be under pressure from the Province to speed up decisions. Luckily the Provincial Elections( where Echo are not anticipating any change) will have happened before then.
Two wells to start this year and two next year is the plan.
I did not probe enough about their cash flow and if they have enough cash to see them through till say April next year when they will have the drilling results of all four TA wells.
If you take this 16 month period, you have interest costs of US2.5m approx, the US4m I have guestimated spent on seismic and say £4.5 m on drilling. Now that they do not need to spend £400k+ on Fiona's salary , wages and salaries will be lower than last year's £2.4m let us say 2.5m in the 16 Month period. In addition we have admin expenses and any losses of CDL in2019. They started the year with a good non cash working capital position and have had the US2m returned by CGC my very rough back of the envelope calculations show they may well have enough cash to survive till the TA drill results are known. They may well be able to get an interest deferral on the loan at suitably high rates. If the drill results are good all will be well and if bad we are presumably sunk.
This is on the basis that any new Federal Government does not introduce any negative policies.
PS
I welcome a robust review of my figures.
PPS
There are quite a few fund managers named Pegasus.Pegasus Alternative Fund Ltd is also invested in another company where director Marco Fumagalli is invested so may be they are a core investor. Heaven help the share price if they decide to sell.
PPPS
I see that they have two brokers Shore Capital and Hannam. I have not come across the second one before but they are big in O&G/resources and have what appears to be a big and powerful team. Cenkos is their Nomad so that they do not lack for City backup

[lukmanpatel] 10/6/2019 06:47

Another troll by the username lsehotdealz haha, share price is stagnant and there’s talks of fundraise at 10p on that board lol desperation has lead to going round posting on different board to prevent share price from dropping, usually ud stay quiet and average down and accumulate if you see huge potential lmaoo he’s spamming all the boards and a newly registered today as a member lol

[steelwatch] 06/6/2019 15:41

Cheers pete. Header amended!

[peterdonovan] 06/6/2019 15:33

https://youtu.be/eJ73xlT5oQY

[avsome1968] 24/5/2019 15:02

Still going up after bad day on the markets 3.7 bid now nice buy just gone through 600k happy days

[avsome1968] 20/5/2019 23:56

Good volume today about time