Echo Energy Share Discussion Threads

[peterdonovan] 07/12/2020 09:55

What's the profit to echo per barrel if selling at $50?

[knackers] 07/12/2020 09:45

Production shut-in over a number of months so not much to draw from the above. More interested in a return to overall 2.5k boe/day over the coming mnths, which looks achievable assuming workover successes continue. Testing of Campo Limite offers upside and de-risk to proximity dev. Mgt seem quietly confident. Martin more cautious than Fiona. Good man to have at helm now.

Will judge mgt on 2.5k boe target for 1H21.

We'll see. Clearly not without risks but also turn-around potential.

[helpfull] 07/12/2020 09:27

What happened in July?
In February 2020 Echo Energy averaged 561 barrels of oil per day. Oil prices were above $50 per barrel.
From 1st Jan 2020-17th May 2020, 59,779 barrels of oil were produced at an average of 433 barrels of oil per day.
From 18th May 2020-30th June 2020, 5422 barrels of oil were produced at an average of 123 barrels of oil per day.
From end July 2020-17th November 2020, 17,859 barrels of oil were produced at an average of 164 barrels of oil per day.
What happened in July? Well daily production is supposed to have increased by 109% by November 2020. So was the July 2020 daily average below 80 barrels of oil per day? That's a drop of over 80% on February daily production.

Oil prices fell from over $50/barrel to zero and now back to $48/barrel over the period. Be careful.

[myn0k] 07/12/2020 08:37

Hi,New to this one. Share price looks unfairly low, but imo could be set for a rebound.

[knackers] 07/12/2020 08:13

If Martin can get the balance of debt restructured Echo will be in good shape. The relatively new Sur assets ‘sure’ look promising ;) with a fair wind success with the testing at Limite and a couple of healthy work-overs I’d have thought 3k boe a realistic near term production target, providing a solid base to open up western TA where I sense - if historical drills are a thing to go by - there is far better (gas) prospectivity than in the East. Still big potential there and at these prices, fully discounted. Toe dipping.

[cerrito] 04/12/2020 22:24

For my sins, I have some shares here but the current market value is so small that I have paid them scant attention .
The DirectorsTalk Interview did remind me about them.
I had never heard of Hadron who seem to have taken just under half of the fund raise this week. As is usual their website does not tell us much.
The points you make Helpful are well taken, especially concerning the director's remuneration in 2019. I see that while the interims did stress how admin expenses had been tightened up, there was no way of knowing if that included board remuneration.
I will go back to sleep for the time being.

[livup967] 04/12/2020 15:57

INTERVIEW TODAY''



sound really good with lots of news to come shortly

ATB

liv..

[helpfull] 02/12/2020 08:05

The numbers on the doors. 807,000,000 shares at present. You have to wait two days before another 233,000,000 Echo shares come along bringing the total to 1,040,000,000 shares in Echo. The 233,000,000 new Echo shares have been bought for 0.3p in the recent cash raise, 20% below the current 0.37p share price. A tidy profit to be had. If the debt restructuring goes through, the debt interest will be rolled up to 2025. Or this time next year it could be converted to Echo shares " issued at a 10% discount to the then prevailing share price at the time of the quarterly interest calculation". At €400,000 or £360,000 a year for the €5,000,000 loan that could be another 120,000,000 new Echo shares (at 0.3p) each year or potentially 600,000,000 new Echo shares ( at 10% discount ) each year for the total €25,000,000 of loans. You do the math. Ignore the (5x) 74,000,000 new warrants at 0.3p for sanity sake. Big numbers. Be careful

[helpfull] 01/12/2020 19:34

Done the math. yet? Is that 17,859 bbls divided by 109 days? Or 164 bbls / day. That's down from 358 bbls / day in the first half results. Add on the lack of demand in Argentina during lockdown, and the drastically reduced price per barrel, and it is easy to see revenues are going to be smashed. Be careful.

[helpfull] 01/12/2020 10:25

"As of 17 November 2020 total cash held on deposit in the UK and Argentina was approximately US$ 655,000 (unaudited)" .

From last accounts the total yearly remuneration of the BOD was $634,589. You do the math. Thank the good Lord they are looking after themselves. Be careful.

[helpfull] 01/12/2020 10:05

" Since end July 2020, net daily oil production has increased by 109% with cumulative net oil production from this date of 17,859 bbls. As of 17 November 2020, net stock of liquids at the export terminal was 7,963 bbls and net stock in the field was 7,776 bbls".

That is a 109 day period from end July to 17th November. Do the math. Frightening.

[rwells4474] 01/12/2020 07:45

Another placing

[knackers] 03/11/2020 12:34

Am in the wings for another toe-dip. ;) Running my ruler... there have been some smart commercial moves played by mgt (Martin). Granted I sold a good chunk of my core holding many months back but see some glimmers... The upside here could be noteworthy (v much so) but for widows and orphans it ain’t!

[helpfull] 05/10/2020 11:49

Best to ignore the figures.
Half year figures (1st Jan-30th Jun) give 390,844 barrels of oil equivalent,including 65,203 bbls of oil and condensate and 1,954 MMscf gas.
In the 6th March RNS shareholders were told of "sales of 33,424 bbls net to Echo, with an average sales price (including where applicable VAT recovery) of US$ 47.90 per boe". 33,424 x $47.90 = $1,600,000. That's for oil and gas condensate.
The half year results informed shareholders "total revenue achieved was US$5.6 million of which US$3.5 million related to gas sales and US$2.1 million related to oil sales".
Therefore the revenue from the remaining 31,779 barrels of oil and gas condensate was $500,000. Or $15.73 per barrel. Worrying if correct. Be careful.

[helpfull] 05/10/2020 09:31

Best to ignore the figures.

Half year results give H1 production (1st Jan-30th Jun) as 390,844 barrels of oil equivalent or 2,147 barrels of oil equivalent per day.
RNS Operational update dated 20th May gave production(1st Jan-17th May) as 310,474 barrels of oil equivalent. Therefore for the 44 days (17th May- 30th Jun) production was 80,370 barrels of oil equivalent or 1827 barrels of oil equivalent per day.
RNS Operational update dated 9th Sep gave production(1st Jan-7th Sep) as 511,416 barrels of oil equivalent. Therefore for the 69 days (1st Jul-7th Sep) production was 120,572 barrels of oil equivalent or 1,747 barrels of oil equivalent per day.

A drastically worsening production figure hidden by the use of averages. The same applies to the price per barrel currently received. Be careful.

[napoleon 14th] 03/10/2020 15:26

Very comprehensive RNS shows ECHO is far from dead.
Whether we will ever see our money back on the shares is another matter!

[helpfull] 11/9/2020 11:29

Interest payments restart on 31st March next year. The company will have to start putting money aside in January. That's €1,600,000 a year on the €20,000,000 loan and €400,000 a year on the €5,000,000 loan. Or €167,000 a month, not including interest on this year's unpaid interest. Add on the £120,000 a year on the 12% £1,000,000 loan and that is £10,000 or €10,800 a month or about €180,000 a month required. Every month. And those compressors. $100,000 a month or $70,000 net to Echo, or about €60,000 a month. So all in Echo Energy requires about €240,000 every month come January. Frightening. Echo is very short of cash. The compressor saga is nothing but a back door cash raise (is it a month since the last?).The oil production is falling and revenues are getting smashed this year. Cost cutting is largely cosmetic. The work overs are insignificant. And loans need repaying. There is nothing for shareholders here. Be careful.

[helpfull] 09/9/2020 10:56

It's all about what's missing. Sales information. Because since March 2020 the Argentine economy has shut down. Oil and gas sales are down. Oil produced hasn't found a buyer because refineries are operating at reduced capacity and the refiners have oil production of their own to process. The $45/barrel target set by the government only applies when a sale is carried out. It does not mean every barrel produced can be sold for $45/barrel. If there is no demand there is no transaction. The oil is stored unsold. This glut means the Argentine government has issued export licenses to remove some of the bottleneck. PPC, also producing oil in Argentina, has exported some of its oil production. At what the market will pay. Revenues are going to be dramatically down at Echo Energy with reduced production and much lower oil prices. Costs of production are high and it's no wonder the management are scrambling to save money. They've got to try and keep the share price up before the next cash raise. Be careful. The tsunami of debt repayment is going to wash small shareholders away.

[helpfull] 09/9/2020 08:01

A long time to wait for an update. Upshot is production continues to fall. 511,416 barrels of oil equivalent since 1 Jan 2020. Average 2040 boepd. The 20 May 2020 update gave production of 310,474 barrels of oil equivalent up to 17 May 2020. Therefore by subtraction the production twist 17 May to 7 Sep was 200,942 barrels of oil equivalent. That is 113 days and gives production of 1778 barrels of oil equivalent. Puts the work overs into perspective. Noticeable by its absence was news of any sales and at what price. Be careful.