Echo Energy Share Discussion Threads

[knackers] 26/3/2021 18:01

Absolute golden top pick for 2021.

Healthy producer with under-developed, low risk asset base.

Top drawer ex-Rothschild CEO.

Get a slice before the re-rate.

[terminator101] 24/3/2021 19:19

The most likely outcome of the bond restructing is already known, so those saying this will 'rerate' on announcement are delusional. Its in the price already.

[helpfull] 24/3/2021 14:06

On 24th February 2021 I wrote:

"Gas production for 2020 was 3,750 MMscf of gas. In the half year to 30th June 2020 Echo produced 1,954 MMscf of gas. So, 1,796 MMscf of gas in the second half of the year. This represents a fall from an average of 10.74 MMscf per day to 9.76 MMscf per day from first to second half. In February 2020 net daily production was 11.1 MMscf per day. Gas production is falling (10-15%)".

Today's Commercial Update, if nothing else, confirms how poor the last year was for Echo Energy and how difficult this year will be. Shareholders are being told higher gas prices are being achieved as Argentina moves into the winter months. No great surprise.

" gas sales beginning in May 2021, and provide for a 126% increase over annual industrial contract pricing previously achieved by the Company in May 2020"

126%. So was the previously achieved pricing $2.10 per mmbtu? The half year report to 30th June 2020 informed shareholders that: "Monthly volume weighted average gas prices for the period to 30 June 2020 ranged from US$2.10-US$2.77/mmbtu". So the lower figure might be used.

"a 39% premium above current local spot price" gives an indication of current spot prices as $1.9 per mmbtu. In the 6th January Commercial Update, Argentinian high summer, the spot prices were $1.56 per mmbtu, so no surprise prices rise in winter. But are prices rising? From the Commercial Update 29th June 2020:

"the Company is pleased to confirm that it has secured further extensions to existing contracts with two key gas customers for a further six months until 17 December 2020. These two extensions provide a weighted average contracted gas sales price of US$4.37 per mmbtu (where applicable, converted using the official exchange rate of the Government of Argentina) for combined net sales volume of 5.6 MMscf/d. The successful contract extensions pricing represents a significant premium to the current spot market of approximately US$1.95 per mmbtu which has increased by 45% per cent since 20 May 2020".

Similar spot price. Higher price than today. Uhhhmm. Remember gas production is falling according to the latest company figures. 30% of gas is still sold at low spot prices. The company needs to renegotiate bond debt because it cannot afford to pay interest payments. Latest oil production figures were 210 bopd (c.210 bopd net to Echo's 70% interest, 8th Dec 2020). Be careful.

[knackers] 24/3/2021 10:33

Some traders and weak holders to clear out, but another positive update which should have the share price heading toward 1p (min) over the coming sessions.

Difficult to see how the bond restructuring proposal cannot be approved as the extra funds will only accelerate further profits and growth.

[easwarareddy] 24/3/2021 08:03

Over 1p today

[garth] 24/3/2021 07:32

"We believe that as a result of these agreements, our contracted gas USD revenues for the year could be as much as 50 per cent higher when compared to May 2020 to April 2021, meaning they will deliver a material improvement in cashflow during 2021."

G.

[terminator101] 22/3/2021 09:41

The crew are in full pump and dump mode on twitter. Tales of golden crosses abound, what's not to like eh?

[knackers] 15/3/2021 12:16

Seems a cohort of bondholders were unable to join today’s call, perils of a Monday morning meeting just before tax y/e.

Good reception from those able to attend suggests ECHO’s proposal is in the ballpark, as it should be after consultations.

[knackers] 12/3/2021 08:14

AH indeed some sizeable delays buyers have been surfacing after hours.

[knackers] 11/3/2021 09:40

Was expecting a delayed trade after y-days close. Didn’t happen and more buying off the bid today. U-huh.

Sell if you must, otherwise don’t be a dingbat ;)

[napoleon 14th] 08/3/2021 16:26

All we need is patience IMO.
Good news will keep flowing like the oil,
management making the right moves.

[jason_scrap] 05/3/2021 20:18

29% today eh... wonder why..? "Smirking face emoji"Terminator crys into his hands lol

[knackers] 05/3/2021 13:29

Today’s move is significant IMO. We were indeed oversold but the mark down was on derisory vols, with v little stock freed-up. The FF now even tighter ahead of a crucial and potentially game-changing period for the Co.

With MH at the helm have high hopes and expectations for this minnow over the medium term and consider it (at least) a three year hold, with debt restructured and growing production in rapidly improving commodity market, current debt isn’t remotely onerous, though fully expect MH to continue his prudent, measured mgt of the production base and portfolio.

[coldspring] 05/3/2021 11:06

Quite the bounce......it was ridiculously over sold. Let us get the bond news confirmed and then move ahead from there......Brent approaching 70 bucks

[terminator101] 04/3/2021 09:16

Hammer time according to twitter. But someone forgot to tell the seller.

[terminator101] 01/3/2021 17:26

Looks like a Director saying "exciting times" just dosen't convince the market eh?

[helpfull] 01/3/2021 11:50

In the latest Echo Energy Annual report the substantial shareholders were:

Nusaken plc : 5.64%
Habies srl : 5.62%
Phoenix Global Resources : 5.61%
Lombard Odier : 4.38%
Pegasus Alt. Fund : 3.76%

Marco Fumagalli, a director of Echo Energy, had a " directors shareholding and interest in shares" of 40,118,865 shares, through Nusakan(5.64%).

There were 711,717,587 shares in issue at the time the report was written. There are now 1,207,894,058 shares in issue. Three placings have taken place to raise cash for Echo Energy since the report was written. There has been no indication that any of the substantial shareholders has taken part in any of the placings. Nusakan, with the Marco Fumagalli connection highlighted in the annual report, would have been a related party transaction if they had maintained their 5.64% holding by taking part in the placings (it would've required a purchase of another 28,000,000 shares in total). There has been no indication so can it be assumed they have not? Major shareholders and their holdings are a good indication of the health of a company,especially the longer term holders. If the future is bright why not maintain the holding? Be careful.