The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
I am going to take the Laguna Maria Well drilled in 2016 located 18 Km away as my reference point.
That well tested a 4m interval and produced 300 bbls /day.
We are stimulating 30m, so by proportion we may have a rate 30/4 X 300 = 2250 bbls /day.
But I am not sure if the pressure in our reservoir is the same as Laguna Maria.
So let's add 20% for a higher pressure, maybe a better permeability due to better fracturing, only because I can and it's fun and I make that 2700 bbls / day, with Echo taking 50%.
Income from that might be 1350bbls / day X 365 X $55 per bbl Brent = $27.1M minus Cost of well, stimulation, CGC carry, operating costs, Tax etc.
Still a tidy sum to drill more oil wells in the vicinity, pay for a short pipeline to Export line, metering station and fund Tapi Aike exploration. This truly may be the door that opens all of the rest of them.
And if this a good sized or better field it just might be as good as a Tapi Aike 1TCF or better discovery!!
But this is just a bit of weekend fun, and we shall have to wait and see.
No harm in flexing a few brain cells on the weekend whilst being a tad fanciful.
So my guess is that EMS-1001 will produce 2700 bbls / day dry oil.
WT
ChezNous
Did Fort Williams a few times.
The Crannog Restaurant on the Loch in the centre of town is brilliant.
Inverlochy Castle is chock-a-block full of wealthy Americans and Europeans.
They will melt your debit card if you are not careful.
You might get a few brownie points if you took (your other and presumably better half lol!!) there for tea.
http://www.crannog.net/
Been here a number of times, never fails to please.
Lunch and cruise is terrific.
If you enjoy seafood, your home and dry.
https://inverlochycastlehotel.com/
Eaten in their top restaurant.
It was a good while ago and not worth the money.
The price of the wine was utterly extortionate.
They used to have "The Factor House" now bedrooms, that was a third of the price and brilliant.
Maybe these days they have something more affordable.
Hope this helps, Fort William is a great base for excursions to Ben Nevis, Glencoe (Where the Campbell's masacred the MacDonald's) etc.
WT
How many barrels a day of oil do you think EMS-1001 will flow at post stimulation?
You can post just a number.
Much better if you can justify your estimate.
Remember though that an "off the wall" estimate might reflect on your credibility.
I will post my number tomorrow morning.
Maybe we can then have a discusion on the responses.
But just a bit of fum.
What do you think or hope?
Tell us!
WT
Me too, strong enough to rot the teaspoon!!
WT
jndavid490
Sorry, dislike Malbec with a passion.
The same for Riesling,
Adore Syrah and Grenache.
All of our palates are different, it would be sad if we all liked the same things!!
WT
trellis35
Below, the advice that I wish that I had had before I did my 1st decant.
I normally stand a bottle of Port that has sediment in it upright overnight.(Crusted, Single Quinta, Vintage)
You hav to be careful with the corks as like with the Malvedos, it was probably bottled n 2006, therefore the cork has been in the bottle 12 years. That said, good or great quality port houses use a very high standard of cork so that it will be longer than most and have the colour of a brown tanned leather.
Have a decanter handy or a clean litre jug.
With one gentle movement, steadily pour the port into the jug.
Just keep the rate even.
When the bottle is almost empty or you see a little fine sediment in the pouring liquid, stop.
Get a funnel and a coffee filter or fold kitchen paper into a cone.
Pour the remaining port into a glass tumbler (or similar) by means of the paper lined funnel.
Lots of sediment to be seen, pour all the port out, sediment and all.
As the pourer that is your prize and you can drink it then and there (the best has a taste almost of cough medicine with a perfume of violets) or you can pour it into the jug.
Pour the decanted port into a decanter and you're off and running.
For those who do not have a decanter (available cheaply on eBay) thoroughly wash out the empty Port bottle with clean cold water and drain all the water from it. Do not use a detergent.
You should now have a cracking bottle of top quality Port and a life skill under your belt.
Be careful though, a port hangover can be of epic proportions, I've got several T-shirts on that one!
WT
Cervelo
I hope that you are correct.
The reason that I wanted to see the Edinburgh video was to see if there were any titbit's like you say.
When you say RNS, I presume that you mean when the stimulation operation starts?
We may then get guidance as to how long they estimate the procedure to take?
The potential of a rising SP will please all shareholders, as there has not been too much to smile about since last June when the SP topped out at 19P!
Onwards and upwards!
WT
I see from the Share Magazine website, that another video from that evening has been published today.
So out of the 5 companies including Echo that attended, 3 are now available.
At this rate, it may be late nest week (worst case) before the Echo one appears.
Not the fault of Echo HQ, more the ability and inclination of Share Magazine to get the job done.
Obviously not a priority for them.
WT
The RNS published on 15/11/2018 gave guidance that the commencement of the stimulation program would be 3 - 4 weeks. So taking the lesser scenario it could start on or about the 13th of December. Whatever the results are, they will have to be worked up; in truth it may be well into the New Year before we get anything definitive. If they do get something out by say 20th December, there is hardly ant time for market reaction. Many analysts may take a few days off between Christmas and New Year and before you know it will be the 2nd of January and their Inboxes will be full to overflowing. You may not like or agree with my opinion but I worked for Oil & Gas Majors for 30 years. And I am not trying to be a killjoy, just realistic. And if they start with ELM-1004 and hit a snag that requires equipment or people, you get the picture!
I like everybody would like it to sooner, but many are watching EMS-1001, as the Edison Report remarked, Echo have to be accurate and credible.
And remember what one poster wrote, giving an estimate of 2 months to complete the operation. Pumping up to one million barrels of water/chemicals down the well, flowing it back out, maybe having to repeat the operation several times if the horizon is tight is not a two day operation, far from it.
So lets wait and see.
Patience is a virtue sadly lacking within the personalities of some.
Do it right and it will take as long as it takes.
WT
And here is an olive branch.
Tesco have on sale until 3rd Dec
Don't hang around, it will scamper off the shelves quickly.
Grahams Malvedos Single Quinta Port 2004
It will require decanting as it will have thrown a decent amount of sediment.
If you are not familiar with decanting Port then just ask.
It comes in a wooden box so an ideal gift
At £20 a bottle, a real bargain!!
WT
trellis35
You misunderstand.
It was never my intention to censor you in any way, shape or form.
Wine is a passion of mine and on another LSE board I was pilloried for mentioning wine except at weekends and then not so much. As far as I am concerned you can talk about wine all you like, my fear for you is that it might serve as a distraction to other B/B members.
Lets start with my DRC Montrachet 2002, the Jaboulet La Chapelle Hermitage 1990 or Chateau Margaux 2015??
Yes, I really own stocks of those bottles but am just as happy drinking a not so humble CdR at £8.
And I am not North Walean, have another go!
Sorry for the mix up.
WT
malkis
Just checked and on the 19th November said that he would buy back into Echo at 4P!!
That boat has well and truly sailed and might one speculate that he is still on the quayside. lol!!
WT
malkis
You have not told us how many shares you hold!
WT
somm
I posted this question before, so again.
Where the heck do they get that much water from, in the middle of nowhere, relatively speaking.
1,000,000 bbls = 158,982 M3
Road Tanker capacity = 40 tonnes = 40M3
So about 4,000 tankers full.
Makes no sense to me, or am I missing something?
Or is there a reservoir locally or a rather large tap or even a hydrant!! lol!
WT
930,000
WT
tomrea / malkis
I emailed HQ about it today.
I noticed that Share Magazine who co-sponsored the event had videos of presentation made on the evening on their website, so I also emailed them with an inquiry.
Unusually, no response from HQ, you never know, they may have all gone on a company trip to the Austral Basin for the fracking! LOL!!
Wouldn't that be fun?
WT
My opinion of Chartism is that it is the modern day equivalent of the removal and examination the entrails of a chicken (as per Egyptian and Roman priests) and basing financial predictions on what is observed.
If Chartism was a credible method of understanding or predicting share movements then why aren't this sectors proponents lying on a beach somewhere with their Cayman Bank Accounts stuffed full to overflowing.
And as far as I am aware, this Financial Voodoo is not taught in any reputable University or is part of any Accountants or MBA course anywhere. lol!!
Other than that, one must plough one's own furrow, so if it works for you that's terrific and the best of luck to you.
If I had a cancer diagnosis tomorrow, I ask myself would I rush off to the nearest Centre of Excellence that had a proven record of treating and curing my disease or would I consult an Alternative Medical Practitioner who might have gotten their qualifications in the mail. I am just asking??
That said, if I saw a geologist trundling over the Patagonian tundra clutching a divining rod that was apparently tuned to hydrocarbons, would give him a very serious body swerve? Yes, without a nanoseconds hesitation? Preferring to listen to the likes of Dr Julian Bessa who is equipped with the latest technology of our age, who has a proven track record and who is about to enhance his reputation with discoveries within the "pipeline!"
I was trained in Science, it is what built this world of Smart phones and test-tube babies, concepts unimaginable 60 years ago. I personally believe that proponents of Chartism are Financial "Snake Oil" salesmen, spouting gobbledegook on the back of 50/50 intuition. Not a fan!!
WT
abzza
Possibly because Echo is not a Top !00 Aim Co, but that's just a guess!!
WT
malkis / MrAndyEFC
Thank you very much.
Appreciated.
WT
What is a price monitoring extension?
Oil, I know.
Not so hot on this sort of financial apparatus.
23% up, a terrific day!
WT