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Joelebeau - thanks for your feedback from the event. Are they looking for oil or gas from the workover that are being planned?

Interesting debate yesterday. I'm going to keep PHE on my watchlist but probably won't invest until the company has raised a decent amount of funds as it's very undercapitalised. I think further fundraises are a near certainty it's just a question of at what price. Also there seem to be many issues that need to be addressed such as feedstock contracts - I'll be interested to see what Gate fees can actually be charged.

I think the aim when Echo was set up was to put together a very strong team. The key employees are well rewarded no doubt but I'd prefer that to paying peanuts and getting monkeys. The potential rewards here for shareholders are enormous if it goes according to plan. The warrants that are currently in the money are subject to a Lock-in agreement until 2019 so they won't have any influence on the share price.

Good post Franko. It certainly seems like an excellent buying opportunity at the moment.

Thanks for your responses. I'm certainly interested in the company as the story sounds great - perhaps even too good to be true. As an experienced investor though I cannot help but think that if the technology is so valuable it will be 'copied' by a much larger company that has substantial funds in place to make it a success.

Sorry if this has already been covered, but what protection is in place to prevent PHE's technology being used by other companies?

I can't believe people are willing to sell at such a low share price. The work programme has been very successful so far and the next well offers huge upside. The drilling cost is relatively low so the risk to Echo isn't that great.

Whatever way you look at it, and I have studied the CPR, this well has huge potential for Echo. Just look at the NPV10 figures which were calculated with a projected 2018 price of Brent at $50. Brent is currently around $77.

This must be one of the best risk/reward plays on AIM at the moment. The downside is perhaps around $2m but the upside on an NPV10 discounted basis is calculated independently at $182m net to Echo at current oil prices.

That's right. The NPV10 for Fraccion D is over $60 million pre-tax net to Echo so it's very significant. Also that figure is only for gas and they have discovered additional oil there as well.

I agree, I'm surprised at the poor reaction to the RNS. It was very positive and I think it has been misinterpreted. The well shows that gas is recoverable from Springhill C1. The 4BCF figure is just connected to this one well. They will obviously have to drill more wells to get the full 15.3 BCF for the C1. The minimum 7BCF figure also includes the Springfield C3 which in addition has a prospective 11.6BCF which wasn't tested by this well.

The 7 BCF target is for the whole of Fraccion D so with the success of this one workover they are well on their way to commercial gas production on this block. The next well on Fraccion D will target the Tobifera reservoir which has a contingent resource of 19BCF. Gas production on Fracc D has a pre-tax NPV10 of over $60 million net to Echo so today's news is very exciting.

Excellent start to the week with a very positive RNS. Lots more newsflow to look forward to 😁

Hopefully we'll get an RNS next week to say that El Molino Sur has been spud. I'm very excited about that one. If it is successful the share price should be back to the highs.

http://www.stocktube.com/video/9525/sound-energy-entering-increasingly-busy-period-with-multiple-work-streams-underway-9525.html

When I plug all the variables into my spreadsheet I come up with a valuation of �2.86 billion. Am I doing something wrong?

Market is stil asleep :-(

Thanks ML

Very interesting, that's what I thought this morning when I read the RNS. Both wells drilled on Fraction C have encountered hydrocarbons. I'm very pleased with the exploration programme so far.

I hope the company gets investigated. It would be interesting to know how all the money raised on AIM was spent and whether any directors benefited directly or indirectly from the expenditure.