Member Info for bigspike

1000 bpd isn’t to be sniffed at, but looks a little less than hoped for. The F7000 reservoir was better than hoped for and once the ubima field is appraised using the optimised new well locations based on the 3D I would hope there is still room for improvement here. Ubima offers diversified production based on land so the operations will be much cheaper when compared to Opuama. I’d expect the next new well will produce from the F7000 reservoir plus another. No doubt what has been learnt here and through the extended well test will be applied to the full field development to optimise production. Oil produced during the EWT will add to revenues. GLA. I’m expecting Gbetiokun to be very fruitful!

Yes they have the image data but they won’t know how much is recoverable yet ...the reservoirs are completely different and variable in quality, bring on the test!

No, different type of reservoir and we don’t know the lateral extent of the Tobifera. In the past I’m sure Fiona had said the Tobifera relies on natural fracture matrix so I’m assuming the 30m they have chosen to perforate has the best natural fractures to aid communication with the well bore and this is also probably also reflected in the best oil and gas indications taken from the E logs. The Tobifera seems to be the focus for now on Ems 1001 and with success will offer the biggest reward to echo because none of this play is currently valued in the CPR.

what would make things interesting is if echo can produce from both reservoirs using the same well. Dual completion is widely used in the industry now, infact Eland oil and gas (another Aim oiler) do this very well in Nigeria. I’m unsure though If fracture stimulation can be used with this type of well, probably complicate things further.... dual completion would be more expensive too but on success has clear Benefits. The Tobifera is still being understood so I’d imagine they wouldn’t complicate things. If successful, Echo may put it into long term test to monitor reservoir parameters to form a field development plan. Any oil produced through test will be sold. Fraction c has a production facility But for test purposes echo will likely use temporary equipment.

EMS Lower zone in the Tobifera 350 Upper zone in the Tobifera 800 If the Tobifera is sub comercial, test the spring hill 650.

with 500 metres of Tobifera, I’d like to think they’ll be 2 zones in that worth stimulating. The primary target springhill formation doesn’t always need stimulating so I’m hoping there’s 3 potential zones to test working from the bottom up.

Will they be fracking 2 zones in the Tobifera and also flow testing the spring hill without stimulation?

Is this for the Tobifera + Spring Hill?

https://www.ogj.com/articles/2008/07/geopark-tests-wildcats-oil-on-chiles-fell-block.html

I agree stix. Given the capital needed to drill one of these wells in Bolivia, Shell and Repsol must be confident. On success, I believe Echo will farm it down to pay for cost to drill the well and this alone will add significant value to echo.

https://www.proactiveinvestors.co.uk/companies/amp/news/210293?__twitter_impression=true

The RBL Facility has closed with commitments of US$75 million from Stanbic IBTC Bank PLC (a member of the Standard Bank Group) and Mauritius Commercial Bank. In addition, the RBL Facility has the potential to increase up to a maximum of US$200 million subject to incremental reserves and production. The Company is also looking to syndicate a further US$25 million to a third lender in the near-term. The RBL Facility has an initial borrowing base of US$103 million from existing Opuama-1, Opuama-3, Opuama-7, Opuama-8 and Opuama-9 wells with further upside from future inclusion of Opuama-10, and Opuama-11 wells in the next borrowing base review. The Company currently has a cash balance of $30 million and an existing $27m of debt drawn. The RBL Facility will be used to refinance the current debt and provide low cost strategic capital for growth to support the ongoing development of the Gbetiokun field, the wider OML 40 licence and general corporate purposes.

What’s exciting is if the Tobifera in ems 1001 comes in it will derisk an additional 4/5 prospects in the same oil trend so additional value should be attributed to those too. Failure of the Tobifera and echo are still backed up by the spring hill primary target!

http://www.valuethemarkets.com/index.php/2018/11/27/echo-energys-share-price-finds-support/

Bought more, these bargain prices are not going to be here for long!

George Maxwell, CEO of Eland, commented: "Eland is undertaking this Programme alongside significant continuing capital investment across its OML 40 licence, the ongoing pursuit of strategic acquisition opportunities and continues to review its dividend policy. The Board believes this Programme is in shareholders' interests and will be accretive to net asset value per share whilst retaining flexibility to both fund our existing programmes and the flexibility to explore other opportunities."

https://www.elandoilandgas.com/media/1284/eland-corporate-presentation-nov2018.pdf

Yes great news this morning, Gbetiokun EPS will deliver an additional 50% increase in production through an additional export route. 30kbopd gross from Opuama and Ubima on test prior to EPS. Exciting times for ELA....

“drilling the appraisal well from the existing West Newton A wellsite offers an opportunity to prove commerciality without the additional surface disturbance associated with building the approved West Newton B site. “Whilst Rathlin continues to believe that West Newton B represents a very good and viable site, after further evaluation, it has determined that the merits of drilling the second well from West Newton A are significant and represent the best option to move the project forward. “If the application … is granted for West Newton A site, Rathlin is prepared to commence operations for the drilling of the second well at West Newton A without delay.”

George Maxwell, CEO of Eland, commented: 'We are pleased with what is expected to be another highly successful infill well on the Opuama field and we look forward to further record field production levels once testing has been completed. At current oil prices, these record levels of production from Opuama field are leading to significant cashflows for all of OML 40's stakeholders. The prolific nature of OML 40 combined with the Company's experienced and resourceful team and supportive stakeholders means that we move development operations swiftly to the Gbetiokun field and the opportunity to increase production by a further 50% in the near-term. Furthermore, the conversion of Ubima-1 into a producing well following the initial workover is a milestone for the Company and following the test of the E1000 and E2000 reservoirs we shall begin to evaluate monetisation opportunities for production from this well. Further evaluation of the D1000 sands are required to consider options for any full field development and we will update the market as we progress these studies. We look forward to updating the market on the progress of both the Gbetiokun Early Production System and the evaluation of Ubima.'