Echo Energy Share Discussion Threads

[brookemia] 08/3/2020 21:25

Oilman Jim, not STEELWATCH🤥 Parsons accomplice🤦‍♂️;

OILMAN JIM:

Meanwhile, the ex-Nostra Terra Ewen Ainsworth stepped up, along with the ex-Sound Energy James Parsons🤥8176;🥊 as new directors of Ascent Resources (AST), both having passed the “necessary regulatory due diligence” checks, however low they may be. The merry-go-round of failed AIM company directors continues to turn🤦‍♂️

[paradores] 06/3/2020 10:10

CLix is a more conventional, low risk well, flow rates unlikely to blow the doors off but encountering the target layer at a shallower depth is a real positive both to reserves and further drill ops in the vicinity - assuming CLix flows smoothly... high time “Lady Luck” showed a smile ;)

The market seems to have fully discounted TA, and that’s a bit of a simplification, the HCs are clearly there, with v many completely different plays and leads identified for exploration.

[avsome1968] 06/3/2020 07:35

results next week we need another pay day.


The Company looks forward to updating shareholders on testing operations at the Campo Limite (CLix-1001) well at Palermo Aike, which are now underway.

[avsome1968] 06/3/2020 07:20

cho Energy, the Latin American focused upstream oil and gas company, provides an update on production and operations following the Company's recent acquisition of a 70% non-operated working interest in the Santa Cruz Sur assets, onshore Argentina. The Company also announces a two-year extension to the Company's existing GBP1.0 million loan originally provided to the Company in March 2017 and now held by Spartan Class O (the "Lender"), a sub-fund of Spartan Fund Limited SAC (the "Loan").
Production and Operational Update
Average net daily production from Santa Cruz Sur during February 2020 was 2,410 boepd (including 561 bbls of oil and condensate per day and 11.1 mmscf of gas per day).
Production over the period from 1 November 2019 to 29 February 2020 reached an aggregate of 298,140 boe net to Echo (including 67,823 bbls of oil and condensate and 1,382 mmscf of gas). During the period an aggregate net 215 mmscf of gas was utilised in the field for fuel and power.
During February 2020 two cargoes of oil and condensate were sold, including the cargo previously announced as in progress at the time of the Company's 5 February 2020 announcement, with cumulative sales of 3 3,424 bbls net to Echo, with an average sales price (including where applicable VAT recovery) of US$ 47.90 per boe, a premium to the currently prevailing local market price at the time of this announcement.
The Company confirms receipt of full payment for the cargo lifted on 5 February with payment for the second cargo expected, as per normal payment terms, in the second half of March.
Delivery of produced gas to customers has continued without interruption, at an average realised price, reflective of the current season (including where applicable VAT recovery), of US$ 2.72 per mmbtu (prices ranging from US$1.5 to US$5.1 per mmbtu during the period). As demonstrated by the c. 19% increase in average gas price achieved during February 2020 when compared to the average price of US$2.21 per mmbtu achieved by the Company between 1 November 2019 and 31 January 2020, Argentinian summer gas prices are at a discount to annual averages and the Company expects to achieve higher realised prices moving into the autumn and winter months versus the summer months now behind us.
Whilst the Company's production in Argentina has continued in line with the Board's expectations since the time of the Santa Cruz Sur acquisition, and in light of the recent movements in oil prices and the potential for ongoing volatility in the short term, the Company intends to put in place an additional unsecured standby credit facility, initially of GBP0.4m and up to GBP1.0m, with an interest rate broadly in line with the Loan.
As at 29 February 2020 the Company had unaudited cash balances of approximately US$1.4 million and expects to receive, in line with its normal payment terms, additional revenues from both the second February cargo and ongoing gas sales before the end of March 2020. The Company also currently intends for a further oil cargo to be lifted during March.
The implementation of this facility is a proactive step intended to provide the Company with access to additional working capital in the short term, if required, including in the event of a continued decline in oil demand driven by recent global events and any, as of yet unforeseen, local impacts.
Extension of Existing Loan
The Company also announces that it has agreed a two-year extension of the Loan.
The interest rate of the Loan, which was previously due for repayment on 9 March 2020, remains unchanged. The Company has agreed that the extended Loan will now be repayable as follows: (a) GBP100,000 on 30 November 2020; (b) four quarterly instalments of GBP50,000 on the last business day of the relevant month commencing in March 2021; and (c) the balance of GBP700,000 on 8 March 2022.
In connection with the extension of the Loan, the Lender has been issued with 3,571,428 warrants to subscribe for new ordinary shares in the Company at a price of 1.4 pence per new ordinary share and with an expiry date of 9 March 2022.
Campo Limite Testing Update
The Company looks forward to updating shareholders on testing operations at the Campo Limite (CLix-1001) well at Palermo Aike, which are now underway.

[tidy 2] 05/3/2020 14:51

hTTps://londonlovesbusiness.com/coronavirus-will-see-home-deliveries-double/

[avsome1968] 04/3/2020 20:44

Been some rather large sells going through last few days, but who's buying them ? results next week.

[avsome1968] 20/2/2020 19:34

Yes all not lost here yet steelwatch plenty to come yet, least we had a good day in HUR hope the turn around continues

[win2003] 19/2/2020 16:40

Thanks for your thoughts, folks. Have had them for a while, topped up with a few more, seemed rude not to really at this price.

GLA

[paradores] 19/2/2020 16:13

1001 would seem to be a proximity find. Yes, they’ve struck a note of caution but the locality has conventional form. I think there could be solid upside from that new block, and if the pay is as deep as they think and flow rates robust they will want to open up the surrounding area with low risk adjacent wells.

Still a bit beside myself the first TA drill didn’t target the vicinity of that old blow out well in western TA.

[crystball] 19/2/2020 15:33

Drilling is hit and miss. A good example was Desire Petroleum in the North Falklands basin prior to 2010. They almost had success in several drilling attempts but it came to nought. Then Rockhopper hit the jackpot first time! We have a few more strikes with the bat to try. Who knows what will happen? The same could happen to Echo as happened to Desire Petroleum, so I would be very wary of describing the current situation as 'An opportunity'.

[bad gateway] 19/2/2020 15:32

I've been wondering if its worth having a punt on CLix-1001 after the drop but must say the views across the boards seem rather negative.
Guess thats a good thing means any move on said would likely be exaggerated as todays reaction has been(imo) unless that one disappoints as well of course.

[win2003] 19/2/2020 15:25

Of course the news is disappointing, but does it really reduce the value of the company by 25%?
At this point after a number of these over-reactions, the value of the producing-well equipment and the site canteen is probably more than the capitalization of the company. Might just be an opportunity for a long term investor....
Any views?

[avsome1968] 19/2/2020 12:19

we was after gas on these few wells Catch ?

[avsome1968] 19/2/2020 08:40

this is pricing in the second well to fail now.

[avsome1968] 19/2/2020 08:14

Well market certainly doesn't like it 25% down

[paradores] 19/2/2020 08:01

Agree Crystal, there’s clearly gas in TA to go after with big potential.

1001 looks solid, and ref there to the shallower reservoir is encouraging.

[avsome1968] 19/2/2020 07:40

Totally agree, lets hope better news on Clix 1001

[crystball] 19/2/2020 07:31

Disappointing result but some positives can be taken from the announcement.