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You never know ! Found this on CGC website, January 2020 presentation, interesting facts about Palermo Aki. ECHO is at the right post code just need a bit of luck. It could be the unexpected one which delivers !
https://www.cgc.energy/img_tmp/20200218124212-20.pdf
? Palermo Aike Shale was ranked at third place at continental level
(South America), and the second largest in Argentina
? Similar acreage to Vaca Muerta, with geochemical characteristics
similar to Wolfcamp Midland and Barnett Basins
? Potential shale play in the Austral Basin is supported by strong oil and
gas shows, overpressure and exploration wells blow outs
? CGC operates more than 3.5 Mm acres located in the oil and gas
window, with recoverable resources higher than 50 TCF
Ridiculous market cap but the lack of detail is not helping. One moment they make us believe that they may go back to this well try to rescue the flow rates. Then they come up with confusing statements as if they have concluded this well as non commercial. Also regarding Palermo Aki when they say existing discoveries it throws more confusion. What exciting discoveries? What quantity? Why is this not disclosed it to us ? I feel like someone is heavily shorting this. Something is not right. As if info is deliberately held back.
It appears now that It's a big relief that CGC are 81% holders. ECHO will have to follow decisions made by CGC. I still think something positive will come out of this given CGC's record. With 19% stake, ECHO has little say in the final decisions.
It's a very confusing RNS. Why would they announce non-commercial gas discovery before even completing the full testing process. They must be confident in exceeding the commercial flow rate once they complete testing from the remaining zones, hence shutting the well for a pressure build up and going back in to test on a later date. Looks like the second drill been put on hold till they workout what to do with this Well. May be at last something may come out of this. No point for me to sell, I will see this through the remaining 4 wells whatever happens.
"As a result, testing of the shallower Magallenes 60 interval, which was the upper secondary target of the CLM x-1 well, and the Magallenes 40 interval is now under consideration with the objective, in aggregate with the flow rates achieved from the intervals already tested, of seeking to exceed the commercial threshold. These additional sand intervals showed elevated gas shows during drilling and, whilst there can be no assurance that further testing and/or commerciality of the well will follow, further technical work will now be undertaken by the Tapi Aike partners to aid the consideration of whether testing of these additional intervals should be undertaken. In the interim, the CLM x-1 well will be shut in for evaluation and the Well Head Pressure will be measured during this time."
Lobe C P 50 : 420 BCF ( 79 BCF at 19% to ECHO), high case 1.1TCF( 209 BCF to ECHO), low case 160 BCF( 30 BCF to ECHO), I believe. They wouldn't comment on actual dollar value to ECHO on the Q & A session so we will have to wait and see how the market responds if there is a positive find. But with the current market cap any positive news will have a substantial impact on the share price. AIMO
By the looks of it, yes. The 3D will be used just to define exact well location. The rest remain unchanged. It could'd be the reason why we didn't get an update on the 3D as it changes pretty much nothing interms of volume and cos. This is my take on it.
This was the reply from Julian to my question on the Q&A session regarding the COS:
"Yonas79, I assume that you are talking about the COS with regard to the current well. As messaged in the RNS pre spud, CLMx-1 is targeting a stratigraphic play known as lobe C. In the CPR of CGA (which I understand is on our website -if not please let me know) CGA give a COS of 34% for a well in lobe C together with an indicative volume range.The 3D has been used to accurately define the well location on geophysical signatures of (e.g. negative amplitude and amplitude vs. Offset characteristics). I hope this clarifies."
Interesting video, hopefully it's our time to shine. It has been a long painful wait.
https://www.youtube.com/watch?v=eJ73xlT5oQY&feature=youtu.be
http://cgc.energy/img_tmp/20191120155045-19.pdf
CGC has 85 % Success rates on wells drilled this year so far. There must be a reason why they took back 81 % ownership at Tapi Aki. It will be an exciting and interesting drilling campaign which will hopefully create some value for us.
https://www.echoenergyplc.com/media/1507/santa-cruz-sur-production-acquisition-2019.pdf
Fantastic position to be in finally.
https://www.echoenergyplc.com/media/1494/echo-july-investor-lunch.pdf
-P 50 7.7 TCF
-1 interpreted well- over 110 meters of gas
-prioritizing drill areas from August
-M & A screening already happening
-"Rebalancing of portfolio to ease funding of
wells – now complete"
Fist drill window Q4
I can not agree more. This is now a completely new play. 4 well drilling campaign starting from Q4 into 2020 and additinal prospects from Bolivia. Money released from CGC after the portfolio restructuring kickstart the drilling campaign. 1 TCF success potentially adding 190 M to the market cap. The presentation next week and the initial result of the seismic will give an indication of the potential. IMO