Member Info for goza172

Swingy before you throw stones at others, your post is also confusing…

Your position is small, but also life changing if EME hit oil, I don’t get it !

Also, at TD we still won’t know if the oil is commercial, still lots of work to do to prove commerciality after TD.

JP still has shares in the company but not options, I assume they expire once he resigned. It’s really starting to look like a good company now, well run, no bull51t and great potential. What encourages me more is the relationships that our BOD must have now established at this time may prove pivotal in our ability to get things done and thus our success. What frustrates me is Sidi, supposed to be a plug and play, it is not and we were lied too. Still super excited for the next 18 months and with an experienced project manager onboard I think we may get a surprise on how quickly first gas may arrive..

Does this mean Sidi will not be drilled ?

Okay, whatever, good luck…

Despite how much I want this share to do well, it always seems to be good to be true. How on earth can the drilling of a world class well see a decline in SP. It can’t be right. Doesent matter what people say, sellers, people derisking, warrants etc, the fact remains that the SP is nowhere near what 99% of most folks thought it would be…I’m out…stinks !!!!

Ha ha, like there going to tell you…!

Tax issue sorted, material progress made on phase 1 & 2 and we should start to see significant momentum in SP...

I did not spend money buying a train ticket to the big smoke today !

Coro chairman has said a lot of things over the last couple of years, all of which to line his own pockets...wretch of a man !

Word for word

as was published in detail at the time of the acquisition of SCS, the testing of the well triggers substantial payments to the previous owner from whom we purchased the asset. I hope this gives some further context around the decision making with regard to this issue. We continue to be excited about the potential of the CL well and are focussed on delivering the testing in due course, but I hope you would agree the need to focus upon the highest immediate return activities that can be delivered within cashflow constraints in the current environment. It is absolutely correct and proper that any updates to plans on testing the CL well as well as progress on existing production enhancement activities are announced to the wider market via the appropriate channels.
As a board and management of Echo we have to balance maximising the impact of cashflow across the 3 competing aspects of; efficient and smooth existing operations; investing for growth and managing our creditors. Without doubt the overall position has improved and that is being reflected in our interim results. Of particular near term relevance is the gas market as our existing gas contracts expire in the coming weeks. Today we still sell gas under contracts and prices that were entered into last year – the recent unprecedented gas price increases globally have been well documented and we are obviously seeking to maximise our future sales potential in that context. Any improved cashflow from increased gas prices will assist with the easing of financial constraints with the potential to enable an acceleration in the investment for growth.
The continuing operational potential of the SCS asset remains a big positive for the company. With the difficulties associated with the pandemic now hopefully behind us (although we are clearly still managing some of the ongoing consequences) and the global commodity pricing environment materially different, the outlook has changed for the positive.
Best regards
Martin

Dear Christopher
Thank you for your patience. I did want to come back with a considered answer rather than a brief acknowledgement.
You have raised a number of questions / concerns but I believe it is fair to summarise that the testing of the Campo Limite well is a priority for you. Testing this well is a material potential upside and hence it is a focus for ourselves as management and naturally also for investors. It is right to be interested in its progress. We have sought to address this issue repeatedly during our reports / presentations, various Q&A sessions and also in recent interviews but we take on board your comments regarding communication and continue to seek ways to improve.
Before addressing the specific issue it is necessary to understand the financial status of Echo as it directly impacts the well testing. The strains upon Echo’s balance sheet have clearly constrained the company and its ability to move forward across various fronts – one of those is the CL well test. The fundamental reasons for these financial constraints are 2 fold;
The debt taken out by my predecessors (2017) to fund exploration in assets no longer owned; and
The huge negative impact of the pandemic which resulted in the shutting in of various wells and overall a large decline in revenues versus forecasts. Echo was financially stretched prior to the pandemic and its impact upon the firm was existential
We have sought to address these issues head on. We carried out a rapid cost reduction / deferral programme and also successful debt restructure (but the debt remains in existence). The impact is plain to see in our published accounts. As at 31 Dec 2020 our trade debtor balance was $13.2m. I am pleased that this reduced materially to $10.1m by the interims as at 30 June 2021. Nevertheless this still equates to substantial amount owed to suppliers in Argentina. Investing for growth from our current cashflows whilst still carrying this amount of creditor debt continues to be a balancing act.
As you will have seen we have identified a large suite of production enhancement / growth opportunities. Many are highly attractive particularly in the current price environment. We have provided detailed costs and incremental production rates in presentations.
You rightly identify the testing of Campo Limite as another upside. The costs associated with testing are however considerably different today to what they once were. The intention had been to test the well immediately after the drilling. However the pandemic restrictions in Argentina intervened. At that time the vast majority of the equipment needed to test the well ranging from the rig and associated equipment, staff & staff welfare facilities, safety equipment etc was on site and already rented for a period as part of the drilling operations. It has of course since been demobilised. Mobilising all this equipment back to site for a new operation is considerably more expensive. Additionally a

GB also said we would drill on Christmas Day and look where we are !

I received a reply from Martin. Quite detailed although does not answer some of my questions. Travelling so will post tomorrow.
Personally, I think one thing that remains to be vastly improved is comms…still think that this will soar in the next 12 months, fingers crossed

Free cash flow means we can now pay ourselves more money, pat ourselves on the back and do f00k all as usual and then this money runs out we will justify a raise on the back of f00k all really !!

Let’s hope the weather is the same too

Shares might have increased but so has the value of gas..go figure !

I have to agree with RubberSoul on this. There is a significant drive on by lots of governments and companies to explore gas markets. We must be on somebodies radar that is for sure, maybe this is the biggest of the ducks lining up, we surely could not be netter placed...

https://www.msn.com/en-gb/news/uknews/morocco-offers-uk-abundant-resources-to-slash-russian-ties-and-avoid-energy-crisis/ar-AAVxFjf?ocid=entnewsntp&cvid=062d8d2b06274876962b7b7ba7417706

Only 32%.. Anyone know Gaffney Cline & Associates? Are they trustworthy?

Errrrrrrrrrr. yes !!