Echo Energy Share Discussion Threads

[avsome1968] 13/11/2019 07:48

Echo Energy PLC Completion of Acquisition
13/11/2019 7:00am
UK Regulatory (RNS & others)

Echo Energy (LSE:ECHO)
Intraday Stock Chart
Today : Wednesday 13 November 2019

TIDMECHO
RNS Number : 1858T
Echo Energy PLC
13 November 2019
13 November 2019
Echo Energy plc
("Echo" or the "Company")
Completion of Acquisition
Echo Energy, the Latin American-focused upstream oil and gas company, is pleased to announce that the acquisition by the Company of a 70 per cent. initially non-operated working interest in the Santa Cruz Sur package of five mature producing blocks (the "Santa Cruz Sur Assets"), from Petrolera El Trebol SA, a subsidiary of Phoenix Global Resources plc has now completed.
Martin Hull, Chief Executive, commented:
"I am delighted to complete this transaction, which will be a key catalyst for Echo. We believe we have secured a very attractive price for a package of assets which provide the Company with a balanced, revenue-generating portfolio with significant upside as well as exciting near-term drilling opportunities. I look forward to updating shareholders on our progress in due course, not least as we finalise preparations for drilling at Tapi AIke."
Terms defined in the Circular dated 22 October 2019 apply throughout this announcement, unless the context requires otherwise.

[steelwatch] 07/11/2019 07:27

Receipt of Waiver

Echo Energy, the Latin American-focused upstream oil and gas company, is pleased to announce that, further to the announcement made on 4 November 2019, the Waiver required to be received by the Company from the minority co-owner of the Santa Cruz Sur Assets in relation to the Acquisition has now been received.

Completion of the Acquisition remains conditional on the passing of the Resolutions at the General Meeting of the Company to be held today.

[avsome1968] 04/11/2019 08:10

ECHO
RNS Number : 1151S
Echo Energy PLC
04 November 2019
4 November 2019
Echo Energy
("Echo" or the "Company")
Extension of Acquisition Agreement
Echo Energy, the Latin American-focused upstream oil and gas company, announces that it has agreed an extension to the Acquisition Agreement, in connection with the Company's proposed Acquisition described in the the circular posted to Shareholders on 22 October 2019 (the "Circular"), with the Vendor such that the Waiver required to be received from the minority co-owner of the Santa Cruz Sur Assets is now required to be received on or before 6 November 2019. Substantial progress in obtaining the Waiver has been achieved and the extension is intended to provide sufficient time for the Waiver to be delivered. The Company expects to receive the Waiver shortly, but should the Waiver not be received by the Company on or before 6 November 2019, and absent further extensions, the Acquisition Agreement would terminate and the Acquisition, the Conditional Subscription and the Debt Facility would not proceed.
Completion of the Acquisition also remains conditional on the passing of the Resolutions at the General Meeting of the Company to be held on 7 November 2019.

[paradores] 31/10/2019 15:57

Very business-like and un-showy RNS. A welcome change!

[avsome1968] 31/10/2019 08:42

Great news still on schedule for December maybe late next month grab your top up shares now before crowd arrives.

[avsome1968] 31/10/2019 08:34

You beat me too it wells.

[paradores] 31/10/2019 07:26

Muy bien...

[rwells4474] 31/10/2019 07:05

TIDMECHORNS Number : 7072REcho Energy PLC31 October 201931 October 2019Echo Energy("Echo" or the "Company")Tapi Aike UpdateEcho Energy, the Latin American-focused upstream oil and gas company, provides the following update on progress in relation to its upcoming Tapi Aike drilling programme.Following the successful completion of seismic analysis which has resulted in a positive decision to drill and, the subsequent refinement and finalisation of detailed engineering work, the Company is pleased to announce that the final location for the first well of a four well Tapi Aike exploration programme has now been selected by Echo and Compan i a General de Combustibles S.A. ("CGC" or the "Operator"). The well will be located in Chiripia Oeste, the eastern portion of the Tapi Aike 3D survey area, and will be re-named Campo La Mata x-1 ("CLM x-1") on account of the now confirmed location.All permits to enable operations to commence have been received, contracts have been awarded and, construction works are now being finalised on the well pad and access roads to the drill site.The primary target of CLM x-1 is a stratigraphic trap which lies in the Magallanes Formation ("Magallanes 20") at an approximate depth of 2,000 metres. A secondary horizon in the Anita Formation ("D3") and a shallower secondary interval ("Magallanes 60") will also be targeted by the well. Technical work with the Operator has identified a high negative amplitude signature at the target area and Class III amplitude vs offset characteristics.The achievement of these technical and operational milestones will enable drilling of CLM x-1 to be commenced on schedule during December 2019, if not before. The rig will be mobilised to the CLM x-1 location once its existing activity with CGC has completed.The well will be drilled in two vertical sections, using the Petreven H-205 rig, to a Total Measured Depth of approximately 2,600 metres and a core will be cut over the primary target and a full suite of logs taken over all intervals of interest.In a success case, CLM x-1 will be completed and may be followed by a mechanical stimulation, which is a standard technique in the basin.Further announcements will be made, as appropriate.Martin Hull, Echo Energy's Chief Executive Officer, commented:"The Company is pleased to report positive operational progress in moving towards the drilling of the CLM x-1 well and to confirm that we are now in the final stages of preparation as we await the mobilisation of the contracted drilling rig. "For further infor

[avsome1968] 25/10/2019 07:54

Echo Energy, the Latin American focused upstream oil and gas company, announces that further to the announcement on 21 October 2019, it has today issued to Martin Hull, Chief Executive of the Company, options to subscribe for 12 million new ordinary shares in the capital of the Company ("Ordinary Shares"), exercisable at a price of 6.55 pence per new Ordinary Share (the "Options").
The Options vest on 11 December 2021 and are capable of exercise thereafter until 11 December 2023.
Following the issue of the Options, Mr. Hull is interested in 600,000 Ordinary Shares, representing 0.10 per cent. of the Company's issued ordinary share capital, and holds a total of 12,000,000 options to subscribe for new Ordinary Shares, all of which are exercisable at 6.55 pence per new Ordinary Share.

[paradores] 22/10/2019 11:42

Solo dos palabras, ‘Tapi’ y ‘Aike’

Nada mas

[avsome1968] 21/10/2019 21:00

Malcy's blog



Echo Energy
Echo has announced a proposed acquisition in Argentina with a subscription, debt facility and issue of warrants. It has entered into a binding SPA for the proposed acquisition of a 70%, initially non-operated WI in the Santa Cruz Sur package of five mature producing blocks in the Austral Basin from PGR adjacent to the company’s own Tapi Aike exploration permit.
The package adds material production and diversifies the portfolio and will produce ‘material cash flow’. Existing production is 3,761 bopd in 1H 2019 (2,633 boepd, including c.500 bbl of oil net production to a 70 per cent interest), underpinned by strong local Argentinian gas prices. 1P reserves of 4.3 mmboe +2P of 13.7 mmboe (net to a 70% interest). Certified 2P reserves are given a value of $44.5m, non-contingent consideration of $8.5m represents a discount of approximately 80% to this 2P reserve valuation.
There is significant potential to increase production through workovers and the up-coming Campo Limite exploration well which is expected to be part funded by the vendor. In the 12 months to December 2018 the assets generated unaudited revenues of $31.9m net to a 70% interest.
Echo is paying $7m cash and $1.5m in shares at 2.91p (a 6.6% premium) and there is provision for the payment of a further $1.5m if a CPR shows an increase in reserves. In this process the company has raised £9.17m of which £4.85m in equity at 2.5p and a €5m secured convertible debt facility entered into with Lombard Odier with associated warrants at 3p.
CEO Martin Hull said today that this is a significant milestone for Echo and demonstrates that the company are “delivering on our growth strategy and that the material cash flow gives an optionality in how we finance the business” and that “This value accretive transaction will create a new platform from which to grow Echo and adds many catalysts to our existing drilling programme at Tapi Aike.” This is a smart move from Echo which, by adding production, diversifies the portfolio ahead of the exciting drilling ahead at Tapi Aike.

[knackers] 21/10/2019 17:09

The deal is only as good as the Tapi Aike 3D seismic picture ECHO now have. To say this is an important read-across would be something of an understatement.

I’ve bought into this news, as I consider it a pre-cursor to TA ops, also expect we’ll hear news of plans to pass the Bolivian option to a major in the near future. Plenty now to go after in the Austral. Could easily multi bag from here.g

[paradores] 21/10/2019 09:05

Not so sure SS, I think TA will act like a pressure cooker! ;)

[soulsauce] 21/10/2019 09:03

Looks a decent deal apart from the $5m convertible debt facility with attached warrants. Might put a lid on the share price for some considerable time?

[paradores] 21/10/2019 08:38

Punchy RNS - Martin is proving to be a shrewd operator. Tapi Aike just got a whole lot more interesting.

Stand-by yer beds!

[bskiny1] 21/10/2019 07:50

Logically they must like something about Tapi to have invested more next door to it....

[soulsauce] 21/10/2019 07:29

Loan notes with warrants attached. Hmmm.

[rwells4474] 21/10/2019 07:25

https://uk.advfn.com/stock-market/london/ECHO/share-news/Echo-Energy-PLC-Proposed-Acquisition/80954084?xref=newsalert

[avsome1968] 16/10/2019 23:40

Para

News cant be long now just need to be patient.

[paradores] 15/10/2019 14:32

Exciting next few weeks. Off the radar...? - solo por el momento ;)

[avsome1968] 30/9/2019 13:13

Bushman

Yes still here looking forward to Q4 spud.

[bushman1] 30/9/2019 08:35

Avsome, may I ask, are you still bullish ?

[avsome1968] 30/9/2019 08:21

Alert

Echo Energy PLC Half-year Report
30/09/2019 7:01am
UK Regulatory (RNS & others)

Echo Energy (LSE:ECHO)
Intraday Stock Chart
Today : Monday 30 September 2019

TIDMECHO
RNS Number : 0443O
Echo Energy PLC
30 September 2019
30 September 2019
Echo Energy
("Echo" or the "Company")
Interim Results
Echo Energy, the Latin American-focused upstream oil and gas company, announces its unaudited interim accounts for the period ended 30 June 2019.
Highlights
-- Restructuring of the Argentine portfolio consolidating the Company's focus on the Tapi Aike licence and its multi-Tcf exploration potential
-- Safe and successful completion of Tapi Aike seismic acquisition campaign
-- Extensive preparation for upcoming Tapi Aike exploration drilling campaign commencing Q4 2019
-- Rigorous evaluation of growth opportunities to maximise shareholder return
-- Continued cost efficiency focus leading to substantial reductions in administration costs
Martin Hull, Chief Executive Officer, commented:
"The first half of 2019 was a period of change for Echo, one in which we successfully restructured our asset portfolio and re-focused the Company on Tapi Aike and our growth strategy. As we continue to progress towards the spud of our first Tapi Aike well in Q4 2019, we continue to be excited by the potential identified and look forward to providing updates as appropriate. "
For further information, please contact:

Echo Energy [e-mail]
Martin Hull, Chief Executive Officer
Cenkos Securities (Nominated Adviser)
Ben Jeynes
Katy Birkin [phone]
Hannam & Partners (Joint Corporate Broker)
Giles Fitzpatrick
Andrew Chubb
Ernest Bell [phone]
Shore Capital (Joint Corporate Broker)
Jerry Keen [phone]
Vigo Communications (PR Advisor)
Patrick d'Ancona
Chris McMahon [phone]

Chairman and Chief Executive Officer's Statement
The first six months of 2019 have seen significant change as Echo moved successfully to restructure its portfolio in Argentina. With the completion of the restructuring, Echo has been able to improve its financial position and refocus its resources on the exploration of the Tapi Aike block and on the Company's growth strategy. Echo continued with the seismic acquisition programme for Tapi Aike which was successfully completed on time and on budget in June 2019.
Argentina
Restructuring
Echo originally secured access to the Fracción C, Fracción D and Lagunas De Los Capones ("CDL") concessions in 2017 pursuant to the CDL farm-out agreement entered into with Compañia General de Combustibles S.A. ("CGC"). The Company and CGC subsequently completed a number of workovers and drilled four exploration wells across the assets. The exploration wells were designed to test the various plays which run through the CDL licences. The results of the drilling campaign were disappointing and, while hydrocarbons were present in several of the exploration wells, they were not capable of being produced at commercial rates. As a result, the Company considered that no substantial commercial upside remained in the CDL licences while they delivered declining production to Echo Energy at an unacceptable financial return for shareholders.
The Board subsequently reviewed Echo's onshore Argentinian portfolio with a view to establishing the best way forward in terms of risk/reward balance and capital allocation. The early seismic indications from the Tapi Aike seismic acquisition campaign served to reinforce the Company's positive view of Tapi Aike as Echo's key strategic priority. Utilising the Company's funds in support of the Tapi Aike drilling campaign was therefore a key consideration.
In order to deliver this strategy, the Company negotiated and agreed with CGC an accelerated close to the initial phase of works on the CDL concessions. CGC agreed to waive any outstanding work commitments, including the previously agreed CDL seismic commitment. The seismic campaign on CDL was expected to cost approximately US$ 11 million and would have been funded 100% by Echo. CGC took on all outstanding liabilities on the CDL concessions. In addition, no deferred cash payment was paid by Echo to CGC on the agreed early completion of the initial phase. This reduced Echo's near-term capital requirements by a further US$ 2.5 million. Residual well costs from the drilling campaign in the initial phase have been fully impaired in the current financial results. Echo withdrew from its interests and liabilities under the CDL concessions prior to the commencement of the second stage of works in accordance with the terms of the farm-out agreement thereby enabling Echo to focus its capital on Tapi Aike.
In order to accelerate activities on higher margin exploration potential, Echo and CGC also agreed to revised equity and cost-sharing arrangements on the Tapi Aike licence. The prior arrangements saw Echo hold a 50 per cent. interest with an agreement to pay 65 per cent of drilling costs across the four well drilling campaign. Echo and CGC agreed an amendment to the terms of Echo's participation in the Tapi Aike licence such that Echo now holds a 19 per cent interest and pay 19 per cent of future costs, ending the previous carry arrangement and significantly lowering the Company's capital needs with regard to the drilling programme whilst maintaining a material stake in the licence. CGC also released US$ 2.06 million of Echo cash reserves previously required for the CDL Initial Phase which will be applied by Echo to fund future drilling in Tapi Aike.
Tapi Aike Operations
Tapi Aike remains one of the most exciting and underexplored licence blocks in the Austral Basin. The acreage has three previous wells that show indications of gas from drilling and logs, and historical 2D seismic and partial 3D seismic. The block also benefits from the identification of three highly prospective independent gas exploration plays and one oil play.
In June Echo announced the safe and efficient completion of the new 3D seismic survey across its Tapi Aike licence and that processing of the acquired data had commenced. Acquired seismic data is now being processed by respected independent processing houses in Buenos Aires. The processing of the eastern cube (Chiripa Oeste, 414 km(2) ) data was carried out by Wellfield Services LTDA and completed post period. Interpretation of the processed seismic data has highlighted an amplitude feature previously recognised during the interpretation of the 2D seismic. The processing of the western cube (Travesia de Arriba, 790 km(2) ) data is being undertaken by Seismic Prospect S.R.L.. Analyses on these processed data is currently being conducted by a team of geophysical specialists on behalf of the operator, and, independently by Echo.
In the eastern cube, Chiripa Oeste, five areas have now been selected for surface location permits and an environmental impact assessment covering these locations has been submitted to the provincial authorities. One of these five locations will be selected to drill the La Vanguardia x-1 well, the first well of the proposed Tapi Aike exploration drilling programme. It is currently anticipated that the La Vanguardia x-1 will be drilled to an approximate depth of 3,000 metres using the Petreven H-205 rig. Subsurface interpretation continues and the La Vanguardia x-1 well location and well design will be finalised once this analysis has been completed. The well currently remains on course to be spud in Q4 2019.
In the western cube, Travesia de Arriba, processing of the 3D seismic data continues. Based on current data, five broad areas have been selected in which to initiate environmental studies and commence surface permitting.
Bolivia
Continuing with last year's efforts in Bolivia, the Company has been working to progress the exploration opportunity in Huayco and Rio Salado, both in a new joint evaluation agreement with Pluspetrol Bolivia Corporation SA ("Pluspetrol") and a Technical Evaluation Agreement with YPFB (Yacimientos Petrolíferos Fiscales Bolivianos) signed with Echo in October 2018. This agreement allowed the Company to purchase and integrate three new - recently acquired and not previously available - 2D lines across the licences into the model. This information has allowed the upgrade and completion of the geological and structural model which improves any business opportunity over these assets.
The acquisition of an interest by Echo in Huayco and/or Rio Salado remains contingent on final commercial terms being agreed. Accordingly, the Company does not currently have an interest or the right to acquire any interest at this stage during the evaluation period. Echo continues to evaluate the best route to maximise shareholder value in relation to the Bolivian position.
Financial
The restructuring of the licence portfolio and early exit from the CDL producing assets meant that Echo only participated in production for the first four months of the period. The unwinding of the inventory position and removal of residual CDL assets from the balance sheet led to a total comprehensive loss for the period of US$ 7.7 million.
-- Gross administration costs of US$ 2.4 million (30 June 2018: US$ 4.2 million) reflect management's drive to reduce overheads. A reduction in the non-cash cost of share options of US$ 0.6 million for the six months ended 30 June 2019, versus the same period last year, reflects staff departures and the fact that no new issues of options to staff in 2019. Third party costs are significantly down on the prior year. Net timewriting was reduced by US$0.3 million versus H1 2018.
-- Oil revenue for the period was US$ 2.1 million with prices realised averaging US$ 52/bbl versus US$ 65.23 for H1 2018.
-- Opex costs for the reporting period only included costs to Apri 2019. Opex costs were lower than equivalent costs for the prior period on a like for like basis largely driven by the devaluation of the Argentine Peso. On the other hand, the unwinding of the inventory position of US$ 0.7million was a cost driver in the period.
-- Exploration expenses of US$ 0.3million included US$ 0.2 million of timewriting, largely for evaluation of possible acquisition targets. External consultant costs were lower than in 2018, however exploration expenditure with third parties is expected to increase in the second half of 2019 with increased evaluation activity following the receipt of the Tapi Aike processed data.
-- Financial income is generated largely from treasury placings, the movement of the Euro denominated debt against the US Dollar and offset by devaluation of Argentine Peso tax balances.
-- Finance costs are composed of an actual cash cost of US$ 1.0million with the amortisation of debt fees, the unwinding of the discount on the debt issue and the accretion of right of use assets bringing finance fees to a total of US$ 2.3 million.
-- The impairment of the CDL assets including expenditure on the EMS-1001 fracking programme and other trailing well costs, in addition to a seismic prepayment of US$ 1.3 million which was foregone as part of the restructuring, resulted in an impairment charge in the period of US$ 2.8 million.
With progress continuing apace on the Tapi Aike seismic interpretation programme, the value of intangible assets reflects expenditure on Tapi Aike seismic acquisition at the original carried cost of 65%. Having funded the full seismic programme in Tapi Aike, Echo retained a cash balance of US$ 4.1 million at the end of the period.
Corporate
Echo continued its evaluation of acquisition opportunities in line with its stated growth strategy as we look to expand our portfolio and build value accretive transactions for shareholders.