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Chablard, there is a pretty simple reason i keep repeating myself, i am quoting the RNS,
Don't tell them your name Pike!! Or mention the new awfully cheap pipeline.
Abzzba.
You keep repeating yourself and doing so doesn't make it correct. You stated "replacing 23 km of pipeline ". Whereas the company says "replace and upgrade parts ".
I'm still looking for where it says it is going to totally "replace 23 kilometers of pipeline "
ATB
You say you are correcting misinformation , exactly what have you corrected ?, all you have done is cast doubt on the paragraph in the RNS that states "US$ 275,000 will be injected by the Company to replace and upgrade parts of the infrastructure etc etc", as always you question facts and statements made by the company and other posters, as always its either fake, ramping or misinformation.
Please, feel free to tell us in some detail what infrastructure and pipeline work will be carried out and what will be upgraded and / or replaced, i assume you have those details to hand ?.
Always the same nonsense. Trying to get a lower entry point by correcting misinformation.
They want a lower entry price. Just ignore them
It says "US$ 275,000 will be injected by the Company to replace and upgrade parts of the infrastructure etc etc" maybe you could read it again, if you need clarification please e mail ECHO as i see no need to comment further.
So it actually doesn't say they are "replacing " 23 k of pipeline
"replace and upgrade parts of the infrastructure"
From RNS: https://www.lse.co.uk/rns/ECHO/operational-update-tzesn26ndgvuqma.html
Capital expenditure net to Echo's 70% working interest of around US$ 275,000 will be injected by the Company to replace and upgrade parts of the infrastructure primarily in the Chorillos, Campo Molino and Cerro Convento fields with installation expected to take approximately 45 days from conclusion of successful procurement. Ten individual upgrade projects will be completed to enable the upgrade of around 23 km of pipeline.
Where does it say that they "are replacing 23 kilometers of pipelines "?
exactly that is what we want. long production life for all the wells. like any miner petrol companies do as well publish estimates of their discovered reserves and how much they think is recoverable at each price.
I wish echo as well does provide more info to share holders to boost the sp.
I should also have said in the below post i doubt we would be replacing 23 km of pipeline if there were not years of production left in these mature wells.
Onwards and upwards, hopefully very very soon.
ARahim, I have no idea what the life expectancy of the Santa Crux wells would be, the Santa Cruz acquisition RNS 21.10.19 states “Santa Cruz Sur package of five mature producing blocks”, on top of that we know there are 38 producing wells in total (mixture oil & gas), the June 8th 2020 workover RNS says “an initial portfolio of sixteen workovers” identified with payback periods between 2 to 6 months, ECHO would not be spending money on workovers unless they felt there was a reasonable life expectancy, certainly years but how many I have no idea.
The June 8th RNS also mentions there may be more wells over and above those 16 that could be subject to workovers.
Monte Aymond is better known, the well successfully discovered and tested gas and condensate at an initial flowrate of 2.4 MMscf/d, and subsequently at an average rate of 5 MMscf/d over a longer 10 month period of production before being abandoned as oil was the prize back in the eighties, the other issue with MA was transportation of the gas due to limited infrastructure at the time.
See MA RNS: https://www.lse.co.uk/rns/ECHO/santa-cruz-sur-monte-aymond-gas-project-utxaqb85ax2zdd0.html
The Campo Limite well is situated around 5km from the Monte Aymond well, both these lie within the Palermo Aike region which according to an Interoil report is not a producing area at this time.
(https://www.interoil.no/?page_id=7 )
There has been numerous reports on Palermo Aike such as the following link.
https://www.researchgate.net/publication/269202387_Geologic_Interpretation_and_Assessment_of_Early_Cretaceous_Shale_Oil_and_Gas_Potential_in_Austral_Basin_Santa_Cruz_Argentina
Best case scenario here would be Campo Limite proving to be commercial with more wells drilled in that region which of course would give us new producing wells for possibly several decades to come,
As always it’s a case of do your own research, always.
abzzb, definitely increasing production is going to push sp up. but we still at 150% return on investment instead of reflecting the x17 multiplier. this will come only once the production wells are proven to have longer life.
petrol investors are looking for the long term return not one or two years. that may suggest that the majority of investors have not yet gained faith in the long term wells production. Once this proven sp is likely shout x10 or more. as someone has already said: sky is the limit.
Do we have any idea about the expected life of wells in production?
ARahim, if that is the case i guess we need to increase revenue, that will come once the workovers,, CL & MA are completed, just a waiting game.
The market is setting sp at expected revenue this year - debt = mcap.
That is: $30m - $12.5m = $17m ---> sp = 1.05...1.20p
upgrading the pipeline news and new well will force movement upward.
It is a bit odd to set price at 150% return on investment given the sector multiplier is x17.
but we are in Latin America not the middle east or Texas.
wait wait and wait. if it is not sp it will be devidend.
I don't think the debt is an issue at this point, lack of movement due to LOs short and warrants, which I believe is now closed.
The company is making progress, still moved up from .35 to todays level, will move when least expected, just not todays hot stock.
Whilst it was good news to have repayments suspended until 2025 the debt is still on Echo`s books. Just like the old repayment mortgages you pay interest for 25 years and then the capital at the end of that period. Could it be that this is the reason why the SP has been slow to rise due to the debt which has not been paid.
I only mention this because asi stated yesterday in my opinion the RNS was upbeat and give lots of hope. Cannot understand why the SP fell. Is there a problem we cannot see?