George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
Janiaz, I never shorted a stock. I was following MH last interviews and he seems confident progress is being made. but the last RNS just ruined al hopes. a petrol exploration and production company need a lot of cash and skills to make it to production. Now they sold all their producing assets it makes no sense they are going to stay in business for long.
I understand that the work overs experienced problems and production costs and I thought it was a clever move to get rid of them. but if that included gas production as well!!! and the left 5% interest explain it all. MH protected his office only. sell as soon as you can. He is not to be trusted with new cash raise and new venture.
Sorry: reduced significantly.
This transaction would enable the Company to retain a much smaller interest in Santa Cruz Sur, whilst also seeing the Company's liability for the previously announced significant in-country creditors and other liabilities reduced significantly.
Mannan, I am afraid this means the left 5% to echo will maintain the office open. the Colombian opportunity is subject to inter oil activity. it is a long waiting game now. MH in office and no more staff. echo is likely to slide to 0.1m mcap and stays there till inter oil decide to kick them off.
If the sale include gas as well as liquid production in santa cruz than by all means it is echo liquidation by the day. where are going to get income from. do they have another alternative in place? what did they do with the all millions spent lat two years??
New start of liquidation process kicked in?
Lancs, echo gas production is not in Santa Cruz and that is the majority of our income.
Net gas production averaged 6.3 MMscf/d during Q1 2023, which was down on Q4 2022 levels (Q4 2022: 7.3 MMscf/d) as a result of facilities maintenance, to allow for increased future facilities uptime, which was carried out across several assets (Oceano, Cerro Note & Campo Bremen) during Q1 2023 and before the onset of winter in the southern hemisphere.
echo as well have assets in Colombia and other gas well 'waiting testing' in the borders between Chile and Bolivia I guess.
echo last months heavy expenditure was not in Santa Cruz. MH want to increase oil production to 2000b/d surely not in
Santa Cruz.
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!!
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.
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.