investors should focus on going forward?11 Dec 2020 10:09
We’re very fortunate actually that there are plenty of items in the pipeline that can really catapult Echo Energy forward so I’ll list them and go through them in a bit of detail.
The improving market outlook means that we can now switch on wells that we shut-in earlier in the year. We started this year with production of 2,500 boe per day and we hope to be there pretty quickly once we reactivate all of those wells and that’s something we’re doing and will be announcing in the days and weeks ahead.
In addition to that, we’ve got our workover programme. This is further boosting production as you go in and recommission wells that have previously been producing in the past, before we owned them, but it’s a low cost intervention to get these wells flowing again. It’s also limited risk which really generates significant value.
We’ve already talked about the financial restructuring so we’ve got the ongoing engagement with bondholders and that’s progressing and progressing well. As a reminder, we engaged with our bondholders earlier in the year and we got unanimous support from them which was very very encouraging. We hope to bring the ongoing discussions to a positive conclusion soon and of course, that’ll be something that we’ll announce and could be a real catalyst for us.
We’ve then got our exploration options, the key one being that we remain very excited about the Campo Limate exploration well, we drilled this well earlier in the year but it was due to COVID constraints that we haven’t tested it. So, it’s drilled, it’s ready to test and we look forward to testing that in the near future. It has the potential to be an important upside in terms of opening up an area of gas to additional commercial opportunities so something, as I say, that we remain excited about.
Of course, beyond these very near term things, we’re also looking always at other growth opportunities, we’ve done deals in the past and it’s something that we are keen to look to continue to grow. We think there’s opportunities in the market at the moment to drive shareholder value and we’ll do that where we see good opportunities, we’ll look at them across the energy space.
Sign In
Follow the stocks
