Member Info for ARahim

Lancs, if you go to the echo website you see what assets they have. at last 4 of them between gas and oil.

In fact Santa Cruz was acquired as a quick fix solution that turned to be not fit for purpose.

Santa Cruz was shot down by the previous owner as at its end of life and echo acquired it to do some well upgrade and get some staff. but it seems after two or three well they become convinced the output is not going to be profitable given the production costs and Argentina cash transfer obligations.

echo was and still producing most of its output form other assets. Santa Cruz wells never produced above 40 or 20 barrels a day.

echo is trying to upgrade liquids production to above 2000 b/d as MH said in his last interview.

The good side of SC was that we need only to upgrade existing 20 or more wells not digging them from scratch.

It appears that echo stopped working on SC after few wells and shifted to the other option 'expensive' but it has potential.

As MH said we are producing very small quantities given the size of the assets we have.

For those who thing Santa Crus is important to echo read this in the last RNS. it is not including Santa Cruz few barrels.

Production from the Company's assets in Argentina remains stable. Production over the period from 1 January 2023 to 05 May 2023 was an aggregate of 148,503 boe net to Echo, including 23,104 bbls of oil and condensate and 752 MMscf of gas. Average total daily production during the same period net to Echo was 1,198 boepd, with 6.07 MMscf/d gas and 186 bopd liquid.

echo is pushing production to 2000 b/d not including Santa Cruz. echo has other assets.

https://vimeo.com/796193010

Ranger, you should not be here in the first place. You are just wasting our time and yours old fel. go to your garden.

Ranger!!

Even dogs have their own day!! you could spend your time growing tomato instead of looking at what abza has said.

Neither you nor him was correct. I don't blame MH for not telling the whole truth. He don't need distant managers to run his business Not ranger or abza or the bank or any one else.

It seems MH was misleading the lot. pretending to spend on Santa Crus while he was developing something else.

He did not do the work overs but instead was doing some work elsewhere developing production.

everyone now knows there are a lots of millions an accounted for not spent on Santa Cruz for sure.

we got rid of al debtors for sure and we will have a clean balance sheet and higher production.

our production is very small compared to asset size we have. these are MH words.

I can bet my house on it. this is going to see 1 and 2p again. it is a matter of news flow now.

good luck all

MH last interview was positive about future production and that does not include the sold asset of course.

He wants to push production to 2000 or more bpd, not from the sold asset.

He is very positive in this interview and he was aware of the coming sale of Santa Cruz

https://vimeo.com/796193010

It is a fresh start.

This is from today RNS. It is what we had before Santa Cruz and it is what we have now:

Production from the Company's assets in Argentina remains stable. Production over the period from 1 January 2023 to 05 May 2023 was an aggregate of 148,503 boe net to Echo, including 23,104 bbls of oil and condensate and 752 MMscf of gas. Average total daily production during the same period net to Echo was 1,198 boepd, with 6.07 MMscf/d gas and 186 bopd liquid.

MH trusted them to deliver but they seems to deliver to themselves only.

Almost 20% but I expect lots of it is due to repeat trades and adjustments. Volume was high to sp to move up. it should be reduced monning days and share tranfered to long term hands then sp start to move with confirmation news:

deal finalized

cash in bank

new debt level

action plan and planned level of production and profit.

good day ahead!!

1.7m is a good deal given these facts:

Santa Cruz is in Argentina

Argentina gov does not allow transfer of cash out without heavy penalties. 'profit written off'

continuous labour strikes and production problems.

Debtors being reduced form 12m last year to 9m this year plus further reduction to 5m through inflation. I guess this deal is there to solve this issue as well. I can see that debtors have 5m or further reduced considerably as it is stated in today RNS.

so in practice even if we keep these assets they will not be profitable for long time given the situation in Argentina.

the new owner can have the nominal profit as they deal in local currency in terms of wages and they don't need cash transfers. hopefully bright future for echo we should see clean profits after this deal.

Somm, seems to have bottom draw cash waiting to buy. he must have sold today already.

isn't it somm????

Trade creditors reduced to 9m from last year 12m and reduced further to 5m through inflation as MH said in the last interview.

echo is currently producing 530000 equivalent of barrel of oil yearly and is expanding its production by the money it will get from this deal and previously generated income from production. Once production expansion and debt cleared echo will be in a much enhanced financial position I guess. They are working to restore good profitability.

As MH said echo has at the moment a very low production compared with the large asset is has.

and that need to change.

Where are the recent posts? we are two hours late.

this should be at least 0.065 today but traders take time to clear.

with trade debt reduced from 12m to 9m last year and reduce to 5m through inflation.
echo producing 530000 equivalent bop and working for more I can see this in 2-3p easy when management decide to
shift to share holders value rather than expansion.
0.25p and 0.50 are the start of recovery. I guess the new investor is faced with the 0.25p minimum to invest.

sp is affected by echo strategy:
echo choose growth over profitability. growth need cash expenditure up front to develop production.
share holder are more keen to hold shares that produce dividend rather than promised mid term growth.
when echo reaches maturity it will reduce expenditure on development and with more sales it will be profitable and sp will move up. but usually sp precede results as it is more built on expectations.
who want to miss this opportunity at these lower prices. Traders of course have no patience but long term holders are happy with this. the proof is in the volume. not a lot.

with approximately 530,000 equivalent of barrel of petrol sales last year:
echo has a health cash flow already, the problem is they are reinvesting it on developing more production in the mean time they were unable to sell it all. The need a partner who have the assets and know how to solve sales problem.

what difference it will make if you have 1m to spend in the new year or you have 1m ear marked for project to be executed in the new year. Not a dot. both are in your pocked but belong to someone else. what matters to you is the result from spending those money at the end of the year.
Knowing you have money to spend ahead gives you confidence to plan ahead that is all. the expenditure will be split on steps in the future.

given what CEO have said on:
'very large reserve position given our current level of production'
echo does not need extra fields to do research and development.
if the asset are tools of production and shipment this definitely will help.
echo main problem now and in the future is to sell more as they will be
able to produce more. we need sales and production tools only.
the business need vertical integration not horizontal growth for now.

just to correct quote 'very large reserve position given our current level of production'

as CEO said. 'Echo have a limited production given the level of assets it has'.
There is an urge in growing beyond this level of production, but echo can still conduct normal business given the current level of production. it can even shut down all development work and stay afloat for years to come.
selling 530,000 equivalent of petrol each year is enough to pay debt and generate shareholder value.
They want to grow this is the issue. and they looking for new partner not only to grow but to sell more.
They are not looking to raise cash, they are looking for new partner with solid input to the business.

The financial report is talking about facts due in last financial year.. like cash balance to date and expected £500,000.00 these are given 'facts'.
In the interview he is peaking about projection and cash flow and that is the management side of the business. They look forward and plan to spent and receive earning.
echo does not need cash for normal business but the new investor is likely to shift production to a new level and may bring with him a new asset to the business. Echo was developing production for the last two years with limited resources and it has last year produced 520,000 equivalent of barrel of petrol. that is a lot for this company size but echo want to grow beyond this level give the large reserves it has as declared by CEO.

remember the contract start in may and that is the source of the cash.