The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
You are correct with your maths.
What we do not know is the cost of production.
So, how much to service each well annually (Roche will have a tariff), the cost of transporting the oil to storage (tankers are not cheap), the cost of storing the oil prior to sales and lading charges. And whilst it would be nice to have wells produce 24/7/ 52, sadly there will be outages. Cost of electricity, water injection and associated chemicals. if pipeline- probably wax inhibitor used. And so it goes. And then cost of licenses, admin etc. Is there tax and vat?
And for gas wells, hydrate inhibitor if required, cost of compression and so it goes.
We have never been told the breakeven price, for our production. Maybe $35 -40.
Sorry to pour cold water, but those and more and maybe some that I have omitted.
And the back of my fag packet is full up. lol
WT
We get the message!!
You object to MH's remuneration package.
So sell your shares (you do have some, don't you??) and Bu##er off to some where that you approve of.
Good people are not cheap.
Martin was dealt the worst hand possible, by the "Profligate Princess!!"
And then the Oil price & Covid hit us.
Talk about bad luck!!
He dug us out of a financial chasm, not many might have achieved that.
So write him an email or did you turn up at the Q&A yesterday??
You have had your say, we have heard you.
Ad nauseum.
WT
To be perfectly honest, with information scattered in various RNS's - I am not absolutely clear what this pipeline work is?
If Echo had done a simple schematic that was published on the website indicating where replacement/upgrades were to be made, there would be no problem.
Like many on here, I do not have the time, energy or inclination to pore over "all the clues" to put the jigsaw together.
Some on here may have successfully done that.
Others may have made errors, and got it incorrect.
The bottom line is that Echo should have in a few simple sentences, given us a clear and unambiguous statement of the work involved.
Replace x km of oil export pipeline (3 inch dia.) with a new one.
Replace x km water injection pipeline (2 inch dia.) with a new one.
Install a brand new oil manifold for 10 oil wells that then connects with the oil export pipeline.
NOW, THAT WASN'T HARD, was it??
The above example that I have given may be nothing like the actual scope of work that has been undertaken.
But in the scheme of oilfield operations, is fairly "mickey mouse" costing just in excess of £200,000.
Where I sit, something simple on the website might have cleared up any confusion that exists.
Mind you, being economical with information gives investors something to discus or argue over, and that is the intention.
Cynical - well, yes!!
WT
Commissioning a pipeline requires pressure/flow testing which I would have thought in an onshore setting might only take a couple of weeks.
So, in my opinion should be soon.
Then open up the closed in wells, which may well flow at an enhanced rate.
Not sure if water injection has been part of supporting the resevoir's?
WT
In my opinion, the timing of this Q&A was ill-advised.
A preceding RNS would have given us some meat to chew on.
What we got was a rehash of what we already were aware of, bundled up in more fine, optimistic/ words that any of us could have written.
The upside for Echo is that it may be Nov/Dec before the next one.
And they will not be required to face shareholders at the AGM.
WT
Without an RNS, there was nothing new to talk about.
In fairness, Echo are not allowed to give us "new information" at these sessions, and we end up going in circles.
The ONE GOOD THING was that no catastrophic RNS was issued as the Q&A opened.
I learned nothing new, I knew that I would not so not disappointed.
I fully expect the SP to continue to slide until we receive an RNS confirming that the pipeline is operational and the closed in wells are producing again.
Off for my lunch!!
WT
I will be there.
Will not ask any questions as Echo cannot expand on what is already out there.
Will a hammer crash down on our unsuspecting heads.
Or will Martin deliver, given we have stood by him and paid him a not inconsiderable salary.
Heck. this might even be Martin leaving!
There are 101 possible scenarios, pick your poison or even your antidote.
60 minutes to go.
WT
The Princess dropped one on our heads, and then headed for the hills.
The afternoon timing of the Time with the Team, invites speculation.
Our meeting starts as the Buenos Aires Stock Exchange opens.
Is this a co-incidence, we have never had a Time with the Team at 3.00 pm.
And "someone" sold 6M shares at 12.41 today, but only got reported as the market was closing/closed.
After the "Princess," I trust no one.
Might it be our Partner Roch in trouble?
Might there be some sort of good news regarding Campo Limite?
Whatever the reason or even if it is something else, we will find out at either 7.00am or 3.00 pm tomorrow.
WT
Reading this morning, the Covid situation in Argentina is not improving.
A steep rise in cases and deaths.
A new lockdown.
Abysmal vaccination rates compounded by a lack of vaccines.
https://www.ft.com/content/d8f8de3a-ed12-49fa-ba0e-f6de7d933d07
No matter the optimism on this thread, these factors are not helping our cause.
We should be realistic about can be achieved in this dire environment.
And on a personal note, I have received both of my vaccine shots - so am as protected as possible.
My advice, when offered - take the jags.
I had a scare last week, ordered up a test which came the next day, did the test and posted it off at 11.30 Saturday morning.
All clear received at 03:30 am the following morning.
The system worked for me!
WT
@HandspringGuy
Diolch yn fawr.
WT
There is no right or wrong here.
The information will be released, when it is at hand.
And not one second earlier.
The stench of testosterone on these pages at times, is disgusting.
You all want to be the Echo Mystic Meg, all knowing and irrefutable.
Can I inform you that watching a cat fight, just demeans you.
Be patient!!
WT
Good news this morning.
Where we have received actual cash, it would be terrific to see these funds put to work ASAP on Workovers etc that will enhance our revenue stream.
For too long ,for whatever the reason income has gone on Company administration and not revenue generation.
WT
"Should be completed" is for me, an estimate or approximation made weeks ago.
There may have been transport, manufacturing or installation delays due to all sorts of factors.
There may have been cases of Covid amongst the workforce.
I would not hold Echo, their partners or contractors to the fire, regarding completion dates.
And then successful pressure testing etc before bringing it on line.
And many a slip, who hasn't been there?? lol
When it's done and reliably up and running, I am sure Echo will post the good news.
Patience.
WT
With the "Princess", the "Doctor of Rocks" and Mr Parsons, we found ourselves in a VERY DEEP hole.
I will give Martin Hull credit in that he has extricated from that seemingly bottomless chasm, and has found for us a way forward.
The "Cult of Martin" chanted Under Promise, Over Deliver, until I was heartily sick of the phrase.
But now Martins time has arrived.
We now have a coherent income stream.
We are installing a new pipeline to assist in the field.
My jury is still out on the Unicorn that is the Campo Limite well.
We have had no credible reason given why the require " out of country specialist equipment and personnel" to do the well test.
Sclumberger, the world's best Well Services company have an office and a big workforce in the Buenos Aires; they are as good as it gets - so why this reason that has delayed the well test??
I will be delighted to be proved wrong if we end up with an economic discovery, but for the moment - a pin in that one!!
So currently a Curates Egg. lol
An the Pandemic numbers in Argentina are not getting better.
I will be looking closely at the wording used at the AGM, regarding the delayed Well Test.
But for now, the promise of an updated website.
News that the new pipeline is operational.
That we are now making an actual profit from our Oil & Gas sales v the Cost of Production.
That the Well Workover program has been agreed/funded/ongoing, not completely sure the actual status?
This is the time for Martin to SHINE and OVER DELIVER!!
WT
https://www.batimes.com.ar/news/argentina/argentinas-covid-19-death-toll-hits-70000.phtml
Covid cases and deaths in Argentina hitting new record numbers.
Less than 5% of the Argentinean population vaccinated, about one third of the entire UK population have had both jabs and these are the most at risk. 50 yrs +
Argentina have not hit their peak yet, therefore economic activity will remain very supressed.
We should be grateful for the progress that they have made in the oil/gas fields with pipeline/workover projects.
WT
Until we get news of this pipeline work has been completed, pressure tested and brought into service, I expect the SP to slide.
Until we hear that workovers have been completed, and the wells opened up, I expect the SP to slide.
Until we find out that travel restrictions in Argentina have been eased, our Campo Limite well will not be tested. I expect....
Until we get a set of production/sales numbers that show the progress made or the price achieved, I expect.....
Lots on the horizon, just not now.
So hunker down for a few weeks or even months.
Echo should come right, eventually.
Be patient.
WT
I have my shares, they are not going to be sold as I am patient.
But there are those who listen to the rampers who say, "2P next stop and then 5P and the worlds your lobster or Porsche!!.)
Next Monday, Wednesday or Friday..... BIG NEWS coming!! Honest Guv!!
They have, for now scuttled away into a dark and smelly corner.
Not a word.
This share will move when the pipeline work has been completed, pressure tested and commissioned for use.
This share will move when we have hydrocarbons available to pump through the upgraded pipeline.
This share will move when we have done well workovers have been successfully been completed.
This share will move when we have more hydrocarbons to sell.
This well will move when we have tested the Palermo Aike well and gotten a good, commercial outcome.
And all the other stuff.
We wait until there is news to be released.
I may take weeks or even months. Don't hold yer breath!!
Then "Mystic Meg" ramper's will the magically reappear, telling us all that they knew the timeframe and the outcome.
They all have "Selective Amnesia," they do not have a clue and are the parasites of these pages!!
WT
I have always found these sessions frustrating.
You attend KNOWING that it is impossible to learn something new, and when it is all over you realise once again that it was 90 minutes of your life that you cannot get back. Groundhog....!!!
It may have been more positive if there had been an RNS this morning, but that didn't happen.
The time served platitudes get trotted out, not because MH wanted to - but because he couldn't/ wasn't ALLOWED to say anything else.
I would have hoped that someone might have asked a question regarding the Covid - 19 situation in Argentina, by the time I had written the question and tried to post it, the session was closed.
To my mind, a bit of a damp squib, but in truth that was ALL THAT IT COULD BE, given the regulations that MH & JB were operating under.
Nothing now but to wait for RNS's to appear from the wide blue yonder.
WT
Register here, by following the links:
https://www.echoenergyplc.com/
For newcomers, PLEASE be aware that NO SP sensitive questions can be answered by Martin or Julian Bessa, so it would be wise not to ask questions of that nature. Again it may help to read through the last session in June 2020, much information is there and that might help you to better refine your inquiry.
I think that there is a better than fair chance that we may get an RNS tomorrow morning, that might drive the level of interest in this huddle to fever pitch.
After the failures of the discredited and long departed "Princess" this is the first time that we start with a clean slate, a decent level of income and a number of projects be they workovers, de-bottlenecking or even completing the Campo Limite testing. We now have an excellent chance of driving the business forward, rather than being stuck in quicksand.
An RNS tomorrow morning may light a pathway forward - we shall see.
WT
I have been sceptical as to how Echo was going to be turned around.
But I will give Martin Hull full credit as to how he has stuck to the task in hand and emerged with his reputation enhanced.
I still do NOT understand as to why the Campo Limite well operations were not done by Schlumberger who are very much resident in Argentina, no doubt that WILL become evident at a later date. I am very eager to know the reason.
It might be that "NEWS" might leak out, it may be that we did not have the funds to cover the cost - who knows??!
The one thing we can guarantee is that SP sensitive information WILL NOT/CANNOT be disclosed at this session. That is not allowed, so any questions that you do have should bear this in mind. Martin and presumably Julian Bessa will be strictly limited to discussing information that has previously been released to the markets.
The market does not open until next Tuesday, so perhaps an RNS prior to the session with Martin on Wednesday lunchtime?
For those who have not participated in these online huddles before, you will need to register:
http://yourechoenergy.com/app/auth/main
It is best, if you formulate any questions or inquiries in advance of the meeting, with so many new or potential shareholders possibly wishing to get involved - the phrase "first come..." might apply.
Wishing you all a terrific weekend, and a positive way forward for Echo.
WT