Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
The Monte Aymond project, located 5.2 km to the west of Campo Limite on the Company's existing Palermo Aike licence at Santa Cruz Sur, involves working over the Monte Aymond well which was drilled successfully in 1984, targetting a Springhill reservoir structure imaged on 3D seismic. The well successfully discovered and tested gas and condensate at an initial flowrate of 2.4 MMscf/d, and subsequently at an average rate of 5 MMscf/d over a longer 10 month period of production. Whilst this well was previously abandoned, the Company believes that the now improved local infrasucture and prevailing gas prices mean Monte Aymond is now an exciting commercial project.
In 2019, a conceptual study was undertaken by the then Santa Cruz Sur Joint Venture partners around the export of Monte Aymond gas with a proposed 2.6 km flow line and associated infrastructure to processing facilities across the border in Chile at a gross cost of US$570,000 and with an economic payback period of 3 months. This assumed a realised sales price of US$42/bbl of oil and a gas price of US$3.5/mmbtu.
Building upon this historical work, Echo has also commenced a feasibility study to explore the option for micro-LNG (compression and liquefaction of natural gas) at Monte Aymond which would increase the Company's ability to sell gas directly to clients in remote areas via truck transportation (a virtual pipeline) with the potential to achieve materially higher sales prices.
As an alternative to the micro-LNG option, the Company is considering the development of Monte Aymond via both the aggregation of the volumes of Campo Limite, and Monte Aymond via a hub development approach to potentially lower development costs and increase the returns from both projects and also a standalone development.
The Company also confirms that testing of the previously drilled CLix-1001 well at Campo Limite will be scheduled once ongoing COVID-19 travel restrictions in Argentina, including the country's borders remaining closed to non residents, have been lifted and that the testing of the CLix-1001 well, and operations related to the identified portfolio of proposed workovers and interventions at Santa Cruz Sur announced by the Company on 8 June 2020, remain operational priorities for the Company.
https://twitter.com/Brand_UK/status/1651841988252127236?s=20
Also they had 1.1 m us on the second of jan and then apparently 0.7 m us given upfront for the new gas contract if reading this properly where has this money along with gas sales gone . Also on the top of that we are selling oil ?
In addition to receipts from Santa Cruz Sur gas sales outside of the Contracts (including all gas sales from the Santa Cruz Sur Oceano field), the minimum committed gas volumes under the Contracts (excluding associated VAT receipts and any sales of additional volumes, net to Echo, of up to 1.25 MMscf/d under the Contracts at the Company's election) have an annualised gross value of c.US$ 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.
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.
https://twitter.com/ItsWarrenIrwin/status/1645874279828066304?s=20
https://twitter.com/echoenergyplc
wondering if anyone has seen this report
https://twitter.com/RoastPR/status/1610612557282246656?s=20&t=BLZDCqNNeyiJ5mftLpO0Gw