RE: Looking forward17 Feb 2019 10:35
Good morning London and all!
I have also had a bit of time to digest the news and yes the Tobifera was bulled up to be massive and it wasn't. It was not expected, so no loss. We were all hoping that increased production would fund more of TA but now it won't. To put things in perspective, why are we all so excited about Bolivia? with $60-70 million drill cost to chase about 1.75TCF in the structure they have identified? we were never going to drill that alone so a farm out or sale is still good news for Echo and that is what we are having to with TA. So back to TA (where we are after multiple TCF of gas 5-10? who knows? the drill cost is peanuts in comparison to Bolivia , $3-5 million or thereabouts per well. we know gas has been hit there, we know of a structure that produces on the other side of the licence area with CGC (which nobody else knew about in the licensing round) that extends into our acreage, we know there are multiple leads, we know it is sandstone and not Tobifera, we know it is easy and quick to drill (unlike Bolivia) many positives, so what if we have to do some sort of deal to help fund the drills... Frac C looked like a nice bonus but it hasn't worked out, TA is the golden egg here. I didn't invest here for the work overs in Frac D, or the 1000bopd production, I invested here for the $500 million net to Echo per TCF of gas on TA. That is still on the cards. We were all jumping around when Repsol had good news next to us in Bolivia and yet TA will blow Bolivia out of the water for amount of Gas, ease of drilling, low cost of drilling, ok both have pipeline running very close to get gas to market but I think you all get the picture.... and the most important thing is that we are making a small profit from our revenues so if we have to do a deal to fund the full EXPLORATION that is different to raising money to keep the lights on!!
Have a good day and look at the bigger picture.
Bobby
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