The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
TIDMECHO
RNS Number : 2419A
Echo Energy PLC
20 January 2020
20 January 2020
Echo Energy plc
("Echo" or "the Company")
Santa Cruz Sur Operational Update
Echo Energy, the Latin American focused upstream oil and gas company, is pleased to announce that the Campo Limite exploration well (CLix-1001) in the Palermo Aike concession of Santa Cruz Sur has been drilled to a total measured depth ("MD") of 2,247 metres and wireline logging has now been completed.
On the basis of encouraging initial data from drilling and logging operations, a decision has been made with the Operator, Selva Maria Oil and Gas S.A.*(1) to move to the next stage of operations to complete and test the well.
The target Springhill Formation was encountered at 2,124 metres. Initial analyses of the wireline log data have been completed and have highlighted a zone of interest comprised of fine grained sandstones. This unit also coincided with elevated gas shows of 193,000 parts per million ("ppm") against a background of 20,000 ppm.
The presence of elevated gas shows in the target section combined with wireline log data is positive and has resulted in the Company and the Operator taking the decision to move to completion and testing. The Company cautions that completion of the well test and analyses of the results is needed to conclusively establish the presence of producible gas.
The well will be completed by the Petreven H-205 rig followed by conventional inflow testing with a workover rig. Mobilisation is currently being scheduled and further announcements will be made, as appropriate, in due course.
Excellent stuff another find, should hopefully start getting back to a decent price.
Let’s be honest this well was an expected result so anything but a move to test would have been a disaster!
I am relieved the news is continuing in a positive way. I do think we need the well testing of both to be commercial before echo is of interest to pi’s again. I don’t see much movement in the SP until then so the coming weeks will seem long ones.
I agree somewhat, PI nervous so we need some good news to gain their investment! This was a targeted zone, close to border and existing wells in Chile, not multiple zones, didn’t state the height of zone as compared to other RNS’s but approx 10% gas sat so not looking too bad really
Very odd that there's no detail of the pay zone. Personally I take that as a negative sign.
Tbh given the abysmal way EMS-1001 played out and the obvious links to SOU, I don't think anyone will be taking things for granted here until gas flows.
You will constantly have the sou trolls slamming this share, goes straight over my head.
The RNS's are now very bland in comparison to previously used dialogue, good, no excess ramping in writing
To put the same comment 3 times has earnt you to be filtered Jones, good bye
Ahh the sour derampers have arrived, it must be good news - SP rising!
Would be interesting to know how CGC normally “word” their updates. If they are always very cautionary then it could be useful to know.
Has anyone read any of their updates in the past?
No mention of how many zones or thickness - one zone?
20K ppm background is better than the first well, so hopefully it flows commercially.
Compared to 6 zones and background 16K ppm.
Thought we would have had news on the first well, deep zone testing, today after two weeks of testing, no news is good news?
Very interested in how the 1m ppm saturation zone panned out.
Tomorrow then.......
16k ppm (parts per million) is 1.6% hydrocarbon gas.
20k ppm is only 2.0% hydrocarbon gas.
The difference may be down to sampling error or how homogeneous the samples were.
I will be honest and say that these well results (so far) may be leading us down the same sort of garden path as last year.
I do not wish to impune Martin Hull and the team as that would be patently unfair.
Last year we had plenty of positive noise before the catastrophic RNS in February.
This year CGC rule the roost in Tapi Aike, so they are spending the most on completion and stimulation.
Palermo Aike, different story. I really do not understand why they have not defined the thickness of the potential pay zone.
Always wise to examine what was said and what was not!
One is reminded that at Eco in Guyana, the entrained H2S number was not initially released, we all know what happened when it was.
Many have said that Martin Hull will under promise and over deliver.
In conversation, he seems like a genuine CEO who really wants to put Echo on the map, and I take him at his word.
My opinion though is that Palermo Aike and the Eastern Cube well are probably not where the real potential value may exist.
The Western Cube historically has produced high pressure hydrocarbon gas to surface.
These two wells are unlikely to bring great fortune to us all.
The West may be a completely different story.
I really want Echo to succeed, as I do have a not inconsiderable share holding.
By the end of February we should have the story on these two wells.
Until then, at least for me I will to be very cautious in my expectation.
And I do hope that the decision not to release the thickness of the potential pay zone in the Palermo Aike well, does not come back to haunt the reputation of Martin Hull.
If it does, we may find that Mr Parsons selected for us in Martin, a V2 of Ms Macauley!!
I sincerely hope that is NOT the case.
WT
I think I’m out tomorrow, I’m staggered why this is not sat higher. I have been underwhelmed with Matd, amer and now echo. I suspect the environmental sensibilities have done for decent rises on Oiler’s. Time to find another sector good luck all
Until or unless the RNS states commercial gas confirmed I can’t see the price changing much
MrMarkyB
I completely agree.
There will have to be categorical proof of a hydrocarbon discovery before an appreciable SP rise.
A less than definitive RNS like the one issued today, in my mind only sows confusion and even distrust!
Echo though will have been aware of the result of not publishing a zone thickness, so I do wonder why they did not?
I did email Martin Hull this afternoon on the subject, accepting that he couldn't tell me directly the thickness or even why they did not publish the number. Presumably they have their reasons, heck it might even be a very good reason!!
One might postulate theories various as to why, but that would be unproductive.
As with most things to do with O&G Exploration, best wait and see!
It does amuse me though that late last week and over the weekend, some posters were calling for an RNS on Monday.
And it came, and now we are not much better informed post the RNS than before.
For the moment we must hang our hat on "encouraged" which must be far better than "abandoned!!"
Hope springs eternal??
I can not recollect any prior RNS where they haven’t detailed the zone thickness! So very odd, and rightfully jumped on, but like I’ve mentioned IMO they had one target here, not multi, Reference RNS on the 19th December,
As previously announced, CLix-1001 will target the conventional Springhill reservoir on a structure located two kilometres from the Chilean border. Technical work has identified the Springhill target on 3D seismic data, characterised by a negative seismic amplitude at reservoir level. The target structure is in the same fault block and up dip of a well which has historically tested and produced gas from the Springhill reservoir.
The CLix-1001 well will be drilled to a total measured depth ("TD") of approximately 2,300 metres and a full suite of wireline logging tests will be conducted over the conventional Springhill reservoir which is expected to be encountered at a true vertical depth ("TVD") of approximately 2,150 metres.
It is all to easy to add 1 + 1 = 3.
But I am a suspicious person who sometimes gets it right and sometimes.........?
We had an RNS today with no zone thickness or reason given.
We had an out of hours buy of 250,000 shares which over the last week or so, was quite big in the context of recent trading volumes.
This may just be a coincidence or it possibly could be a leak.
The next few days may be very interesting, and IF I was contemplating getting out of Echo; I wouldn't quite yet.
Stop losses can be a useful tool but in a rapidly rising market, ones shares can be sold from underneath one with an out of date limit order.
I use neither of these devices. Not a fan of egg on my face!! lol!
WT
Interoil buying ? Never know what Jose Manzano and his friends from old Andes Energia (PGR) might be up to.
As a shareholder in Interoil (Oslo Stock Exchange) I wonder what their plans really are. Both in Colombia and in Argentina. Why take this 8,33% interest in these concessions ? His own company Integra Oil&gas (now major shareholder in Interoil) holds 21,66%.
Norb