The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
Just what we want folks! We'll most of us :-)
I don't think the market has any idea yet how much oil and gas we are chasing with the projects 1-4. They are HUGE volumes of both. Infrastructure in place, supportive government, improved understanding of the reservoirs, profit making, the list goes on. The spud of KRT 45 should kick off the news flow . Steady move upwards will do nicely now!
So the next 3 wells are ready to drill. Planning to have them done by year end. I wonder what the production target is by year end. I would agree with previous comments that 1000. - 1200 boepd should be comfortably achieved. Countdown is on to July spud! Exciting 6 months ahead for sure !
Exactly hepseal. All progressing very well. Sooner or later with another positive well result we will take off big time. Pat E 1 sidetrack spud will get the attention of the market. HUGE volumes of gas down there!
Still here Rocky. Not much to say till we start cracking on with the next phase!
We are back to where we were BEFORE JKT results in January 2022!!!!!!! I mean wtf??? Just a matter of time!
I've seen many a good RNS released on a Friday. Can't be far off some news now on KRT 45 spud.
All aboard!
Hallelujah. We might be moving back up !
Paul, read the following.
"The Contracts provide gross 6.0 MMscf/d of committed production, 4.2 MMscf/d net to Echo, at an average price of US$ 4.33 per mmbtu, with the Company able to elect to sell additional volumes of up to 1.25 MMscf/d net to Echo under the Contracts. This optionality, at the election of the Santa Cruz Sur partners, allows for the potential sale of additional volumes under the Contract at Contract pricing whilst also providing the Santa Cruz partners with a degree of flexibility with which to capitalise on attractive spot market pricing".
The clue is in the word "commited ". The gas contracts are for a fixed amount at a fixed price.
Correct me if I'm wrong but we are selling our gas on a fixed contract. Fixed amounts for a fixed price. Who keeps saying we can't sell our gas??
"This is without doubt the best position we have been in".
I second that Madman!
Nothing to say Rocky ATM. Just waiting for the inevitable 100m+ market cap company. This current sp is just a joke. We are valued less than before we had the SLB assets, less than after we had the JKT results, just plain baffling. But the production continues and the money rolls in.
From 3rd May 2022 RNS
"In addition to receipts from Santa Cruz Sur gas sales outside of the Contracts (including all gas sales from the Santa Cruz Sur Oceano field), the minimum committed gas volumes under the Contracts (excluding associated VAT receipts and any sales of additional volumes, net to Echo, of up to 1.25 MMscf/d under the Contracts at the Company's election) have an annualised gross value of c.US$ 10m at Contract prices (c.US$7m net to Echo).
It is anticipated that the increased revenues arising from the Contracts will provide additional resources over the course of the Contracts capable of being applied towards the acceleration of the Company's operational priogramme to increase production whilst also being applied to the outstanding Santa Cruz Sur Joint Venture historical creditor balances. As of 30 November 2021 this Santa Cruz Sur Joint Venture balance is estimated (unaudited) at US$12.9 million gross or US$9.0 million net to Echo's 70% interest. These Santa Cruz Sur Joint Venture creditor balances are prior to Argentinian VAT credits due to the Company.
So $7m for gas (absolute minimum achieved) plus say 200bopd @$65 takes us up to about $12m per year revenue on the absolute lowest case scenario. That is $1m each and every month MINIMUM!!! Where has all the money gone??
Good job our gas is sold on fixed contracts then .
That was just for Feb and march. What about the last 12 months? The gas is on a fixed contract. Which is the majority of our revenue!
I totally agree Goza. This cannot be swept under the carpet. We have had 18 months of positive RNS's at least and yet the one this week says we are nearly out of cash after having to temporarily reduce production. The reduced numbers are still very decent figures btw. We have been told time and time again that free cash would be reinvested to grow production and yet we hear nothing about the workovers. This nerds investigating by the authorities.
From 7th July 2022 RNS
Martin Hull, Chief Executive Officer of Echo, commented:
"Following a strong H1 2022 of production, we are pleased to announce an important and material step in the Company's strategy to deliver organic growth from the Santa Cruz Sur assets. The ability to now materially increase production levels from Santa Cruz Sur is a result of the right choices that were made during the Pandemic creating a strong operational platform on which to build. Having stabilised the business, we are now able to pivot the asset towards the current momentum in commodity prices. By significantly increasing production we drive a virtous circle of cash flow strengthening our financial position and providing additional potential for future growth. This is underpinned by the strong pipeline of identified opportunities within the Santa Cruz Sur asset base. We look forward to working with our Partners on this and to further update the market as our work programme progresses."
Where is the increase in production promised in this RNS? Has it all been blatent lies or what? We were supposed to be recycling cash flow into growing production???? Where has all the money gone?
From 24th March 2021 RNS
Martin Hull, Chief Executive Officer of Echo Energy, commented:
"We have previously commented on the improving market conditions for our business as commodity prices increase, and the Company's ability to secure these new contracts with industrial customers via a competitive auction process reflects the increasingly supportive commercial environment. It is encouraging to now go further and see the improved market conditions translate to tangible improvements in future revenue. We believe that as a result of these agreements, our contracted gas USD revenues for the year could be as much as 50 per cent higher when compared to May 2020 to April 2021, meaning they will deliver a material improvement in cashflow during 2021. We continue to pursue an innovative and flexible commercial strategy, enabling Echo to secure this type of premium pricing. These contracts also confirm that the Company is viewed as a reliable and attractive supplier to the Argentine industrial sector, and can achieve strong pricing for our output."
How come after all this time we haven't got $10 million in the bank?? Where is all the money from our production?? All this production revenue belongs to shareholders! We need an investigation.
From 1st October 2021 RNS
"The successful restructuring of the loan represents an important and positive step for the business as we continue to make great progress in 2021 both commercially and operationally. It materially reduces the near term cash outflow by delaying maturity whilst additionally reducing ongoing debt servicing costs, further strengthening our financial platform. These steps free additional resources to support our ongoing strategy of reinvestment in rapid payback production growth opportunities at a time of commodity price strength, reinforced by our attractively priced gas contracts. By investing in Echo at a more than 100% premium to the prevailing share price and agreeing to the lock up period, not only are the Lenders strengthening the balance sheet but also demonstrating confidence in the business and its strategy."
There are so many examples in previous RNS's it beggars belief. Where is all the money from our production??