Member Info for NordinC

I think the next few weeks will be exciting and interesting. A commercial discovery could turn this around, and a solid workover programme starting in March may well send this in the right direction before H2 and tapi aike.

I found the investor Q&A relatively encouraging.
A number if the questions WT raised where brought up and answered quite well. I managed to ask a question. it eventually got answered but took some time,I guess there was a waiting list.

P Aike testing has started and on schedule so hopefully we will here on that soon.

eastern cube drill not totally dead, as a number of other intervals combined could provide commerciality . decision to spend more on testing in order to potentially achieve commerciality being assessed. western cube delayed till H2 as more technical work needs to be done to establish best possible well locations.
investor presentation apparently up on site, although I have yet to review.

I asked some further questions, previously asked by fellow investors on this board to Martin. these questions were regarding the recently drilled well in the eastern cube, lack of information release and the issued Wizard asked concerning the exploration well in santa cruz ( reliability of seismic data).

below is his response:

 

As I mentioned previously I do understand the frustration.

 

Exploration is a high risk business and whilst we all hope for a very positive outcome, by its nature that is not always the case. That doesn’t change the real impact of the commercial failure of the exploration

 

You will appreciate that I am unable to engage in a conversation that reveals any previously undisclosed information. The only way we can reveal sensitive information is via the RNS mechanism. Those rules are in place to protect small investors like yourself. The alternative is what used to happen in previous decades where certain investors got an advantage through access. You will I hope understand that in seeking to be a corporate citizen with the highest integrity we want to, and simply must respect those rules.

 

I did want to correct a couple of inaccuracies.

 

We clearly stated in the RNS that at the well location the tested intervals do not meet the commercial threshold by themselves. Again as stated we estimate the commercial production threshold is approx 1 mmcf/d. The tested rates are below that. However there are additional intervals of potential interest which we have not tested. We are looking into whether those intervals might combine with the tested intervals (or indeed by themselves) to meet the commercial threshold. As you would expect we are doing a detailed cost benefit analysis on our options. We are unable today to draw any further conclusions other than the tested intervals are not commercial.

 

With regards to the Campo Limite well, is was an exploration well. You will appreciate that the published CPR figures on the Santa Cruz Sur assets are for 1P and 2P reserves. Exploration does not impact these reserve numbers.

 

In terms of information disclosure I take this very seriously. I have asked my team to compare our disclosures vs our peers. I have had it reconfirmed that we provide more than similar peers and substantially more than our regulatory obligations. We hope to have a revised and updated investor presentation available in due course.  

 

As we look forward I believe there is much to be positive about. In the short term the Campo Limite testing will provide a result in the near term (clearly there remains both risk and real upside). Meanwhile the production optimisation / enhancement at SCS is tangible and with a different risk profile to exploration. Nevertheless the continuing exploration potential in the Tapi Aike license remains and this has always been considered the potential ‘game changer’  

to do*

if santa cruz drill does come in what can we expect the sp is do? what heights may it reach?

Hi MarkyB

I agree the lack of information is not sufficient hence why I raised it with him. he is willing to answer these questions. have you emailed him directly or do you plan to address these issues at Thursdays investor Q&A session?

i contacted martin hill directly and as always the gentleman always replies in due course. I raised concerns about the lack of information provided to shareholders and the near term future for echo. his response is below.

I do understand and appreciate your concerns. It is a clear disappointment that the first Tapi Aike well was a not a commercial success. Whilst there are some positives to take from our technical work, and the validation of the sub-surface model, this does not change the lack of commerciality in the test intervals.

We remain very upbeat about the future and believe we have a strong strategic action plan in place. In the near term we are focused on 3 clear areas;

- Campo Limite testing

- production optimisation (cost reduction) and enhancement (increase from the current already significant base) in the SCS assets

- further Tapi Aike well in the western area (the substantial potential seen here was the main reason for our entry into Argentina)

I want to assure you that management is doing everything to increase our chance of success. Nevertheless exploration remains by its nature a risk business.

I would also like to assure you that we take our obligations to provide information to shareholders very seriously. I would be very happy to talk further with you if that would be helpful.

anyone know the reason for the delay in identifying th next tapi Aki drill site?

I wasnt expecting as long a wait for the next tapi aki drill. H2. remember talking to MH who informed the summer months H1 2020 will be extremely busy with completion of the 4 well drill programme. this will take much longer than I was expecting to see some upside. let's hope santa Cruz comes in well. fingers crossed

encouraging figures

Really looking forward to 2020 for echo energy. I spoke with MH a few weeks ago, and he is very different from previous directors. lovely chap, seems genuine. very optimistic but cautious. He is not about investor events, but will let the drills add value to our share price.