Echo Energy Share Discussion Threads

[knackers] 17/12/2020 13:56

3,000boepd 2H21. Anyone prepared to bet against it??

Near term low fruit to be picked in Santa Cruz Sur.

Echo with their TA option will no doubt want to prioritise future involvement in Western TA ;) The partners know the HCs are there and the 3D acquired will help ensure a safe programme - past drills suggest zones of interest are ‘lively’.

[tomboyb] 17/12/2020 13:50

216mill vol -

Massive vol -

[napoleon 14th] 17/12/2020 13:43

Picked up a few - averaging down to av. 1.75p/share.
Aiming to claw back some of the £6K I made when they first quoted.....

[tomboyb] 17/12/2020 13:38

Grabbed a few above 0.50p -

[knackers] 17/12/2020 12:12

But here we’re simply comparing a negotiated premium contract (prices/rates) with prevailing spot market rates. That’s a positive development. What could be clearer?

[helpfull] 17/12/2020 08:30

From H1 2020 results :

"Monthly volume weighted average gas prices for the period to 30 June 2020 ranged from US$2.10-US$2.77/mmbtu".

Today's RNS compares against November spot prices. Convenient. I think it is misleading. The revenues for Echo Energy are declining. Oil prices received this year will be eye wateringly bad against a backdrop of low production rates. Be careful.

[knackers] 17/12/2020 08:24

Chunky contract also evidence of buyer confidence in the business. Something that’s been notably lacking here :op

Keep watching... ;)

[naplion] 17/12/2020 08:10

Will see ...

[myn0k] 17/12/2020 07:56

Nice to see. I was new to echo from the recent interview with the CEO and so have got in during the sub 1p price, so I can understand if longer term holders are a little bitter. However, this CEO seems switched on and this recent RNS confirms there is indeed future activities to look forward to.

[joelebeau] 17/12/2020 07:55

He obviously also doesn't know when Argentine winter is or how long the contract agreement is for

[knackers] 17/12/2020 07:50

That RNS says a lot about Echo’s reset strategy, focus and intention - improve production, financial rigour and commercial terms to generate the cash flows needed to underpin future exploration ops and growth.

I’ve bought into the action that has been taken, and expect to hear more positive news in the coming weeks and months. Risk v much to upside now - IMMHO.

[knackers] 17/12/2020 07:42

You clearly do not understand the significance of spot to contract rate development, Napie, back to school for you.

The read across from analyst briefings pretty much since August, firming of the futures markets, under investment in exploration and depleted conventional reserves + vaccine bounce all point to a solid mkt for fossil fuels and commodities generally through 2021. I’d expect Brent to be testing $60 well before Easter.

To say this contract rate premium over spot is positive is something of an understatement - it is DIRECTIONAL - as I expect next years interims and fwd guidance to confirm.

[naplion] 17/12/2020 07:17

The price of gas in Argantina is expected to rise further in the winter month up to April as there is shortage of supply . So this is not a premium , this is a discount to the buyer who now guaranteed supply in winter at a discount price. Why the rns trying to make it good news???

[knackers] 16/12/2020 13:22

Not unreasonable for 3,000 boepd to be in the sights of mgt for 2H21 without ANY contribution from TA. I’m carefully building a large position at these super low levels.

Seems it’s not just me buying off the bid in recent days. 10m shares now locked away sub 0.4p. I’ll stick my neck out for a 2p target with next year’s interims and on the 1st major positive result from western TA I’m thinking in the 3-5p range. The HCs are there as past drills have confirmed.

Whilst respectful of BB commentators am more than comfortable and confident in Martin’s integrity, commitment and financial aptitude. He’s smart and is delivering against external headwinds and a tough brief. Top marks so far and if the past 8-12 months are anything to go by m’thinks plenty more to come for the patient and fleet of foot.

[helpfull] 16/12/2020 12:38

There is €25,000,000 and £1,000,000 fundamental debt in Echo Energy. That equates to £23,727,272. Or the equivalent of 2.3p per share. And that's for the 1,040,000,000 shares after the latest cash raise. So every share a mug punter buys he or she is getting 2.3p debt in return. Get used to it. The company is geared up to issue more shares. Be careful.

[knackers] 16/12/2020 10:30

It doesn’t take an online troll to fig that the not-so-new CEO has had a steady hand on the tiller, guiding the business through an incredibly challenging year. Not only now an obvious going concern but once again we see upside potential, and potentially significant (let’s not jinx it..)

Campo Limite looks like the catalyst (assuming it flows nicely) offering low risk production upside from the springhill vicinity.

I expect to see steady production increases and cash generation through 2021, the foundation have been laid and good use made of the quiet COVID months. GLA.

[myn0k] 15/12/2020 12:27

For sure, everyone should do their own research. However, people who have nothing nice to say may as well spend their time posting elsewhere. Otherwise to me it suggests sour grapes or a disgruntled ex employee. In my opinion this one is uncertain but holds potential, which is why I took advantage of the low price. The company is making changes for the better. I would not recommend to anyone to buy nor would I recommend people to steer clear. DyorThat said, I do hope to see us reach 1p following some additional position RNS updates.

[disruptor1664] 15/12/2020 12:19

I'm always cautious when strangers offer me help out of the goodness of their heart with nothing in return.Sometimes they don't appear as helpfull as they first make out.

[jason_scrap] 14/12/2020 10:59

Lol. Suggest you re-read them. Bully all you like. I have serious conviction in whats coming. Let's see who's right soon enough. Goodbye

[helpfull] 14/12/2020 10:24

The cash burn encompasses the savings. That makes the situation worse. The figures are from company RNS's. Please don't call me a troll or I will stop posting. Bullying always works. Be careful.

[jason_scrap] 14/12/2020 08:17

Wrong... Very wrong. You've not factored in the purchase of new equipment or 136k they are now saving every month. On top of that the wells are now producing 2500 bopd, where as they were shut down past few months so cash burn would've naturally been more. Troll harder or get buying hahaha!

[helpfull] 13/12/2020 22:30

No wonder the $700,000(gross) cash raise was necessary on the 1st December 2020. Echo is not awash with cash. Be careful.

[helpfull] 13/12/2020 22:12

What's the cash situation? At the end of June 2020 there was $1,164,408 of cash and cash equivalents. That was down from $1,698,012 at end December 2019. A drop of $534,000 in six months.
On the 27th July 2020 Echo Energy raised £475,000(gross) or £450,000(net). That's $585,000 at $1.3/£. That would give total cash and cash equivalents of $1,749,000 after the cash raise.
" As of 17 November 2020 total cash held on deposit in the UK and Argentina was approximately US$ 655,000" . That's a fall of $1,100,000 less $6,000 in 4 months and 17 days. Wow! About $220,000 per month. At the same rate of decrease that would leave $435,000 by year end December 2020. By March 2021 there will be no cash remaining at that rate. At the end of March 2021 the company needs to pay £120,000 interest on the £1,000,000 loan. Remember that? The 1st April 2020 debt restructuring RNS. And every month for the next three years the company needs to pay its part of the $2,200,000 payment for the compressors, starting Jan 2021. That's about $43,000 per month, every month(net).
Two cash raises in six months. About $1.2-$1.3 million. The next might be nearer than you think. Be careful.

[myn0k] 11/12/2020 18:04

Same, while the amount I purchased is of a safe investment amount for me, ultimately it's still a punt! I think the news in the latest RNS was good and I would like to think such operations have revenue potential. I would at least hope for 1p by year's end. Still, who can tell!

[jason_scrap] 11/12/2020 17:44

Bought far too many of these this week... FAR TOO many. Haha. Hopefully the beast gets unleashed this side of Xmas. Make my year lol