Member Info for Grill79

Yup

Posted this comment thread earlier today as a snippet from the RNS today. The whole comment from Stephen is:

Stephen Birrell, Chief Executive Officer of Echo, commented:

"I have just returned from a very successful visit to the Tesoro Mine, meeting with the Mine Manager, Mining Engineer and miners. Progress in "preparing the mine to mine" is on track and *****we are looking forward to Boku receiving early revenue from the ore recovered during the shaft preparation process.**** We also took the opportunity to meet with our joint venture partners at Boku and held meetings on further potential projects under discussion."

I'm presuming that this early revenue is during the next 15 weeks rather than at the end of it, I could be wrong but that was my interpretation of it

....and we are looking forward to Boku receiving early revenue from the ore recovered during the shaft preparation process.

- presumably this will be taking place during the next 15 weeks (i.e. before actually mining the gold)

I'm guessing 0.04 was meant, although that seems a bit of a stretch - even back to 0.01 would be a massive shift in fortunes. Albeit it would be very welcome!

Contra, I suspect that a big reason for them forcing this law through is so that they have more control of media/propaganda and stifling contrary views and dissent running up to and during an election - i.e. to improve their chances of winning.

Thanks for clarifying Adon, I had meant SENX but had forgotten that point. Maybe Xtellus again then, possibly we'll find out tomorrow/Fri

Delayed reporting of 2m shares purchased 10am on the 15th for £66k at 3.30 price - I'm guessing this is the company at it again? are they supposed to RNS this

Last AGM was 26 June 2023 so you will be waiting a while until the next one

My initial take on that Exposure draft is that its an attempt to enforce minimum taxing of profits on petroleum resources but that gives a more generous allowance (i.e. lower tax) if those profits are derived from a Greater Sunrise project. Seems to be suggesting that you can't have cost deductions that take your taxable profit lower than 10% of the sales receipts, unless its in relation to a Greater Sunrise project in which case that 10% is lower (or significantly lower - details get hazier as it gets into the calculations). i.e. minimum taxing of petroluem profits based on Sales receipts but giving a major tax-break incentive to GS projects. Thats my take anyhow...

Relevant then to remember from the 26 May 2023 RNS;

- The parties intend to evaluate the prospect of the potential future acquisition by the Company [Echo] of a producing Colombian portfolio from the Buyers [Interoil] resulting from an option to drill an exploratory well therein subject to due diligence and future agreements as to terms (the "Option").

Argentina

Mar 23 - Boepd 1,942 / Bopd 277

Apr-23 - Boepd 1,591 / Bopd 194

In Argentina, production losses averaged some 350 boepd, mostly from the Santa Cruz fields, due to mild winter temperatures and strong winds causing most of the lost production. Interoil is working hard in solving significant surface production issues related with some obstruction in most of the hydrocarbon pipe network system connecting different gas fields among themselves.

Report link:

https://www.interoil.no/?page_id=13&year=2023&PressReleaseID=3004392

From the RNS; not £1m but US$0.7m net to Echo
'In addition, an upfront gross cash payment of US$1 million (US$0.7 million, net to Echo) will immediately be paid and applied towards the working capital of the Santa Cruz joint venture.'
No idea if that is still available to use or has been swallowed up in ongoing costs.... would be nice to know

tombi1 - there was an RNS re Gas contracts 2 Feb 2023, is that the info you're looking for?

extract:
New Gas Sales Contracts
The Company confirms that, following a successful commercial process for industrial clients, it has secured two new gas sales contracts (the "Contracts") for the upcoming 2023-2024 period with materially improved terms compared with the contracts announced on 3 May 2022.

The Contracts have an initial term of 12 months, with gas sales under the Contracts beginning in May 2023. The Contracts provide gross 6.8 MMscf/d of committed production (4.8 MMscf/d net to Echo) at an increased average price of US$4.48 per Mmbtu for the 2023-2024 period (compared with US$4.33 per Mmbtu for the previous period). In addition, an upfront gross cash payment of US$1 million (US$0.7 million, net to Echo) will immediately be paid and applied towards the working capital of the Santa Cruz joint venture.

The Company is able to elect to sell additional volumes of up to 0.7 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 spot market or other pricing when attractive. The Contracts additionally enable the potential for the parties to mutually extend arrangements for a further two years, subject to future negotiation and market pricing.

The improved pricing terms and the upfront cash payment (without financing costs), combined with volume flexibility, represent a significant step for the Company in its strategy to maximise the commercial value of its production as it continues with the ongoing programme of increasing production.

v.similar to June/July last year, much better than Jan though!

https://www.bbc.co.uk/news/world-europe-64899041

They dropped that rather quickly

Thats a really interesting read, thanks for posting Jarv

I think they are mentioning 2 valuations; a risked overall valuation (incl Chudditch) of .708p (down from 0.775p due to ex-rate), and separately a success case valuation for Dunrobin alone of 0.70p. Have I got that right?

From 13 Jan RNS
"I am pleased to report that we continue to make progress with our Plan. This is a strong set of quarterly production results, with liquids production showing a ninth continuous quarterly increase. This production growth is a direct result of the infrastructure investments that we made under the Plan during 2022. We remain committed to delivering on our strategy to grow production and are looking at working capital options that can build on the initial success of the programme and accelerate production growth from Santa Cruz Sur. I look forward to reporting further progress that will deliver value to our shareholders."

Looks like the upfront $1m must have been a 'working capital option' that they were looking at

miker444 - dividends on shares within an ISA are not taxed

CDF1 - I'm scratching my head a bit too. I'm wondering if they want this in order to put the company in a stronger position for any negotiations or offer? and possibly, in part, so they can press on with Dunrobin activity regardless of the timeframe for Chudditch. That is a guess though