Firering Strategic Minerals: From explorer to producer. Watch the video here.
joelebeau
I have just used the contact form again.
I will wait a few days to see if I get a response.
If not, I will try the email addresses that you have kindly posted.
I am mystified as to why they have a contact form and then do not respond to shareholders inquiries?
Maybe they only check it once a fortnight!! lol!
WT
I think that as we approach the time (hopefully a few weeks) when an RNS might be expected regarding the stimulation, volatility might increase as might volume of shares traded.
I do not know how a RNS might be worded, it may be a straight bbls/day missive.
It may even give a wide estimate of bbls in place within the horizon that was tested.
We have been told that this operation is one of a number that might be performed within the 120m of percieved pay zone.
With regard to information from Echo, last week I did fill in the contact form on the website stating my shareholding and politely requesting some information. I have as yet not received an acknowledgment, let alone a response. For a Company who has recently won an award for Investor participation, this was truly disappointing. I should note that other PI's on this B/B have indicated similar. I would have thought that at a time when our SP was not doing so well, Echo would be pulling the stops out in keeping shareholders as informed as they could. It is all very well doing presentations all round the country but not all of us can attend, for a variety of reasons.
Is a simple email response too much to ask??
I will try again this afternoon.
WT
redetin
The ways bean counters organise ownership, I have heard it said that tankers are placed in shell companies and mortgaged to the hilt so if a major incident occurs, there is no asset only debt to claim against.
I would not be surprised that company "owned" drilling rigs were financed similarly.
I have fond memories of Stadrill, and participated on the odd course with them and shared a few jars.
Those guys had stories you would not believe and I cannot repeat!! lol!
WT
abbzba
My reasoning was that you would absolutely expect communication from well bores 30m apart.
Why would you not? The rock would have to be incredibly tight if you didn't!
So why mention 30m?
I think that there was a typo here and you are absolutely correct, I did miss it.
Has anyone seen a map of Tapi Aike with the site of previously drilled wells on it?
I do think though that it is a question worth asking.
Cheznous
I look at the work BP are doing West of Shetland, having drilling rigs on contract for years and I presume they cannot make an economic case for a company drilling rig. In Shell we had our own one for quite a number of years, but eventually decommisioned it. I would think that for it to be economic in Argentina, it would have to be fully utilised over the year. We do not have the workload to support the cost of a rig which may cost $30M to buy, better hire at $15k/day with wages etc on top when we need it. (estimated numbers)
The downside is that we have to book our place in the queue to hire but with CGC we have a partner who has an interest in our success.
Have a good weekend.
WT
neillyt
Q1
On Page 22 of the Gaffney Cline CPR, previously drilled wells on Tapi Aike are addressed.
TA.X-1 well was drilled by YPF in 1974 to a depth of 3406M TD.
It detected high pressure gas and for technical reasons was abandoned.
The rig was moved 30km and TA.X-1(bis) well was drilled to 1871M before being abandoned due to a pressure blowout. The two well bores are reported to have communicated during drilling.
Are Echo following up this possible gas field?
If the field extends 30 km+ subsurface, what might be the possible gas reserves in place?
What pressures were reported to have been encountered? This drilling took place 44 years ago, so presumably that information and more may well be in the public domain.
Q2
In the event of an economic oil reserve being discovered at EMS-1001.
How far away is it from the oil pipeline?
Do we have access to it?
What is the spare capacity within the pipeline?
In “ballpark terms,” what would be the cost of connection and associated facilities like Separation, pumps and flare boom. Could associated gas be connected up to the gas pipeline and what volumes would be economic or is there a presumption that gas cannot be flared and must be exported?
Thank you for the oppotunity to ask questions by proxy, through you.
I am sorry that I will not be at the event but I do hope that it it is enjoyable and informative, and I look forward to any information that you can glean from Echo to be shared to all on this B/B when you are able.
Have a good weekend.
WT
I stand in total awe to your financial expertise!!
Having demonstrated it here, as you are not indifferent in reminding us; I have to presume that you are reclining on a sun-drenched Caribbean beach whilst sipping cold cocktails adorned by tacky umbrellas!!
How I wish that I was so, so gifted to be able to predict a fall(s) of this magnitude.
Please tell us how many times you have done it previously, which share(s) and quite what where the rewards??
Mere mortals like myself would love to know your secrets, so that we might drive Ferrari's, live in huge mansions and have collections of IWC's or Patek Philippe's??
WT
Just bought 30,000 shares in Echo a top-up.
I have no idea if Echo will fall further, but at this price; it appears to be a bargain.
Lots of prospective good news in the pipeline over the next 18 months.
If that happens, these prices will look like bargain basement.
In a month or two, looking for an Echo RNS when I wake up might be quite exciting.
There again, in a years time we will be on the verge of a 4 Tapi Aike well drilling program!
WT
I have seen shares behave like this in the past.
Hurricane fell from around 65P to 26P and rebounded.
It would not surprise me if some scallywags were walking this share down in anticipation of a big result from EMS-1001.
No share is a linear progression, I get the feeling that many thought that this would be a slam dunk!
It is not.
So if you require handholding or reassurance then hop off to a Building Society.
E&P is a big boys game, so if you think Echo may fail then 7.6P might with 20/20 hindsight seem like an attractive offer.
Or if you believe that we have not hit rock bottom, then sell and buy back next month.
But for every share sold today, some one somewhere bought it and presumably thought that they got a bargain.
And if one or more of these wells being stimulated is a success, then there will be people having a fabulous Christmas or New Year or February at your expense.
Today SDX, a very well managed company fell 5%!!
And I own those too.
When PI's whinge about a SP, they are demonstrating that they have no business buying E&P shares.
They obviously did not think through the potential downside whist salivating about their "guarenteed" profits when they pressed the buy button.
And for those waiting on the sidelines, for the SP to fall to their preferred number, a RNS can pop into our inboxes any morning, wouldn't it be tragic to miss out!
WT
I think that they have no option but to be ultra cautious, until they have auditable numbers that they can publish.
And that takes time!
The Tapi Aike 3D will be ongoing.
That will require interpretation.
Phase 2 & 3 of the well workovers will require some attention
Tapi Aike is a year away.
These 2/3 exploration wells for the moment are the imperative.
We have been involved in this Argentinean asset for less than a year.
We have drilled 4 wells.
We do not have, as yet many employees.
Rome was not built in a day, but I reckon that we have a brickworks and a cement making facility in the early days of production.
When I read the Gaffney Cline CPR less than a year ago, I could not have imagined that in less than a year we would be at this point already.
My advice, Cool yer Jets, we will have news soon enough and all the clamouring, ramping or deramping here will not bring that day forward, one minute!
Echo themselves will want the best possible news out into the market as soon as they can!!
Sod's Law states that news will come when you least expect it! LoL!
Have a good weekend.
WT
From the Edison Report, it says that 120m of the 500 metre hydrocarbon interval is "potential net pay," with further additional intervals (500m minus 120m = 380m) may flow with stimulation.
So we would appear to have 120 metres of "potential net pay!"
There is a comparison well "Laguna Maria" located 18 kilometres from EMS-1001. which was drilled into the Tobifera in 2016. The pay zone there is only 4 metres, as opposed to our 120 metres rising with stimulation to 500 metres and that 4 metre zone yields 300bbls/day. I wonder where that well lies relative to our acreage?
Am I saying that you can do a direct extrapolation (120/4 =30 X 300 = 9000bbls/day), of course not.
If they manage to get part or all of the remaining 380 metre intervals to flow, who knows what the number might be?
And how big is our acreage on that 500 metre Tobifera, because that will define our potential reserves and scope for more wells to extract hydrocarbons in place. We do not know for how far the 500 metres of Tobifera extends, it might get thinner quite quickly or even extend for many kilometres at 500 metres or more. And is there nearby pipeline capacity to handle large flowrates?
Lots of information/questions to ponder!
It might well be an exciting Winter, maybe results not until February (only 16 weeks) but they will be working flat out to get in there and define the extent of the potential discovery.
And for those who want more information, you might email Ms MacAulay but she will be constrained by what she is permitted to say, so good luck there!!
Another Investor Chat Date in the near future might be useful.
As ever, just my opinion.
I am sure that we would all be delighted to hear yours.
WT
Jaggers
Please see report for Argentina.
3 companies are covered including Echo and our well campaign is covered including specific reference to EMS-1001 with significant interest.
It makes interesting reading especially from an Independent 3rd party Research Group.
Reposted, for those who missed it the first time round.
Posted by MrMarkyB on 22/08/2018.
https://www.edisoninvestmentresearch.com/?ACT=19&ID=21819&dir=sectorreports&field=19&utm_campaign=1276826_Exploration%20watch%20-%20Argetina%2021082018&utm_medium=email&utm_source=Edison%20Investment%20Research%20Limited&dm_i=2PWO
I am of the opinion that Echo might have worded communications with regard o EMS-1001 differently, if they were not constrained by the language they were allowed to use regarding exploration within Argentina.
I hope posters find this report useful reading.
WT
We have seen 2 people join the Board of Directors of late.
1. Martin Hull, ex Rothschilds
2. Dr Gavin Grahams (Non Exec) ex Shell, Petrofac
My conundrum is what did they see in a £40M company that brought them over?
Whilst Tapi Aike is the prospective jewel in our crown, the 3D has not been shot yet.
Our CPR gave a number of large prospects that "might" indicate large +1Tcf accumulations, we have not drilled any yet. I will concede that the failed wells where blowout occurred and burnt for 6 months is a terrific indicator, I do not see Tapi Aike being the carrot. And Dr Graham is not being hired to do technical, day to day work for Echo, his job is to provide "Independent Oversight and Constructive Challenge" to the "In Place" Executive Directors. To be blunt, to ask the awkward questions, when necessary!
I think that in all probability, EMS-1001 really is transformational.
I have no idea how big, but to cause both of these guys to come over, it must be BIG!
I looked at the FT published work program,
https://markets.ft.com/data/announce/full?dockey=1323-13528918-6GUMJL7I7DEVLL0ELQJ7K121LH
They were targeting 11M bblls in the Springhill worth $35M to Echo (post tax) with a 36% CoS (Estimated chance of success.)
What they actually found was a "very significant hydrocarbon (light oil, the best sort) column" of 500 metres. That is off the scale massive, if it was in the Springhill Sandstone that they were targetting. It was found in the volcanic Tobifera, which is very different to sandstone. The upside is that there are oil wells in the region producing from the Tobifera, so comparisons might be drawn. Some oil bearing sandstones are referredto as bieng "tight," that is that they do not flow easily without being encouraged. So they are stimulated or fracked.
I think that the indications must look very good to these 2 seasoned proffesionals. They must have bought into Echo's technical reasoning before agreeing to join us. Why would they jump ship 18 months before a potential Tapi Aike success? I think that they have been sold on EMS-1001.
But there must be caveats, such as will the well flow? How much of the 500 metre interval is oil bearing? What is the recovery factor from this Tobifera resourse? What are the potenial volumes involved? And I am sure, many more?
Am I infering far too much from these 2 industry professionals joinining us?
Maybe I am.
So what is the CoS of me being right?
Just a bit of fun on a Sunday afternoon!! lol!
After all, we are all entitled to an opinion.
WT
somm
A terrific post that "stimulated" (lol!) some thoughts.
Where the heck in a sparsely populated area do they get that amount of clean water?
And do they clean it up after if "flows back" before disposal?
Are fracking chemicals different for volcanic rather than sandstones?
I am sure CGC &/or other contractors have done it on other wells, so the process is well understood, presumably.
So any investor, oilman or not will have to be patient with regard to results!!
All of my experience is with sandstone resevoirs as I presume applies to the majority.
Echo in some respects, is proving to be a very steep learning curve!!
Have a good weekend!
WT
jag11
I do remember several dismissive remarks with respect to this commitment well.
I just wonder what level of discovery there might make our interest (12.5%) something of value?
Just a speculative thought on a quiet Thursday afternoon.
WT
I note that this well (SRM3) was spudded on 17th June with an estimate of 90 days to drill.
We are one month past estimate and no news.
Anybody??
WT.
From the latest presentation 2 wells 2019, 2 wells in 2020.
The cost to Echo only $12M which sounds cheap.
From Julian Bessa's interview the oil well in NE Tapi Aike seems like a priority, as much for potential income.
So guessing, one gas well and one oil well in 2019, 2 gas wells in 2020.
I wonder if these wells will be drilled back to back during the Winter of 2019/20?
As a throwaway, does anybody know what the CGC Oil Fields NE of our potential oil well is producing bbls/day?
There is also the matter of Phase 2 & 3 of the oil well workovers, if they get the "go ahead."
Eastern Flank of Canandon Salto Field now requires infrastructure for monetisation of the dry gas.
And what happens to the 2 wells (EMS &ELM) after stimulation if as we all hope, good news results.
There may well be a shedful of work to do there.
Potential sidetrack of ELA-1 updip looking for Springhill Hydrocarbon deposition.
And Bolivia!
Is there anything that I have missed?
If there is then please feel free to add to the work program.
For those who think that Echo are taking it easy, having a kip or off skiing in the Andes, you could not be more wrong.
For a small outfit to have this level of work commitment on their plates is impressive and challenging.
I am sure that they will do well on our behalf.
WT
I wonder that the motivation is that some who have never invested in Echo or have bailed out are talking the share down. I cannot believe that their scribblings are taken any notice of by those who can effect the SP.
Do they think that their negative viewpoint will cause the SP to fall?
So why do they post?
Do they really have the best interests of those currently invested in Echo?
I am aware that there are those who frequent boards only during business hours, who are paid to deramp.
You never see them peddling their wares at the weekend or evenings.
Quite often they have a very short posting history or re-merged from a very long break.
To do this for a living must make their parents and children so very proud!?!
When they were sitting their formal examinations in school, I speculate whether they thought that they might be reduced to deramping for an income?
It will be interesting to see posts over the next days, weeks and months when these easily identifiable posters as their irrefutable history will testify to, will try to get back to their vile and vicious campaigns.
Their attempts to drive the SP down further are laughable, the SP will recover as and when good news flow is made availabe to us, the Echo investors.
WT
Jobbinscl
Totally agree!
Topped up!
WT
Sailplane
Thanks for that.
An Interesting and challenging report to decipher.
Is it little wonder that those who write such documents are paid "the big bucks!?!"
WT
It might be misplaced, but I think that Christmas may well bring good cheer to Echo.
So I will buy more shortly, not a huge amount but enough to make my holding a round number.
It is my opinion that a BoD of this experience and quality would not be involved in a Mickey Mouse £41M operation unless there was a pot of gold at the end of the rainbow.
I think that those of a jittery disposition or cannot afford to take a hit should think very seriously of their involvement here.
If these 2 wells do not produce good news then it will be at least a year until Tapi Aike wells are drilled.
So if you think that the SP looks bad now, what will it look like after 2 disappointments.
E & P is a risky business, when it pays off, the results an be astronomical.
I believe that we have 2 very good rolls of the dice with this fracking program.
I have a decent enough investment already.
And I am prepared to wait for Tapi Aike exploration if failure occurs.
The question that I think Echo investors should be asking themselves is are you prepared for the long haul??
If not, this present SP might with 20/20 hindsight seem like a selling opportunity gone to waste!