Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
malkis
From some of your posts, you seem to be very unhappy with the performance of Ms MacAulay.
Here is her email address and I am sure that the B/B would be delighted to hear what response you get from a critical or otherwise enquiry.
f.macaulay@echoenergyplc.com
Failing that, here is the Echo Energy contact form.
https://www.echoenergyplc.com/contacts/
I think that as shareholders, we are very fortunate to have a CEO who makes herself available to ALL shareholders.
WT
Hi Bobby
Thanks for the link, I had not seen it previously.
I am delighted that Echo have got Sclumberger on board, they are at the pinnacle of technical expertise.
I, like other investors can hardly contain myself for great news from regarding these 2 wells. But that enthusiasm must be tempered with the possibility that there might be 2 disappointments, or one success or even two!! We will just have to wait, be patient and allow the technical team to complete their task.
I have not, for example seen any competent estimates of what a potential "500 metre hydrocarbon column" might translate into potential reserves or flowrates.
My mind, in truth boggles!?!
If anyone has credible numbers then I am sure that we would all like to know your thoughts?
But to throw a bucket of cold water over it all, I am reminded of an East Shetland Basin oil field that great things were expected, it turned out that the sandstone was so tight (before the days of horizontal drilling and ergo fracking to exploit the resource) that it was abandoned. Happily, other oil producing strata was fortuitously discovered in that block and the day was saved. Note, none of this has been documented, failures rarely are!!
I an hugely optimistic with regard to these wells, but until we have the accredited numbers, hopes and wishes do not translate to a bottom line.
I imagine that within 8 weeks or so, we will all be much the wiser, time will tell!!
Have a terrific weekend.
WT
London69
I did mean that it is an opportunity (and I will buy next week) but given a double stimulation failure, there must be a downside.
Not catastrophic but perceptible.
But that's just my opinion and no better or worse than anybody else's.
The truth is that few can outguess the MM's!?!
Have a good weekend.
Nelson0001
It was my ballpark (upper estimate) of a wildcat wells chance of success.
I might just as easily said 20% or 25%.
Just a guesstimate.
The Crown Point Well SMx-1001 is producing in excess of 2000bbls/day.
But that is from a small pay zone.
We will have to wait and see if a successful stimulation does take place.
Then observe if the well flows hydrocarbons, and what they are and how much?
And if it does, that it does not deplete quickly.
Pressures will need to be recorded.
What might be the volumetric's of the calculated trap, if one exists at all?
There are so, so many things that can make it a dud, but so far, so good.
Echo are excited, they are in possession of all the current information.
And I am absolutely certain that they want to get on with the 2 stimulation jobs as soon as they can.
They want to find a shedful of oil and gas, that's their job.
It will be done when they have the scope of the job pinpointed, with no "stone" (lol!) left unturned.
They will make sure that they have the right people and equipment in place.
This/these wells are very important to Echo, they know that how they conduct themselves here will be subject to immense scrutiny.
The SP will follow as and when the newsflow comes, for the moment in my opinion it is no more than a buying oportunity for those who can.
But there is a very perceptable downside as well, and if that happens, todays price with 20/20 hindsight might have been a terrific chance to bail out.
That's the world of Oil & Gas Investment, when it goes the other way!?!
WT
This morning I decided to see if any other explorer had found oil in the Tobifera in Southern Argentina.
I found that a Canadian outfit called Crown Point had, and I looked at it's SMx-1001 well.
Please do NOT infer that it is an analogue of our EMS-1001, this is just an observation of what has been found.
We begin with:
Oct 5th 2017 statement.
http://crownpointenergy.com/2017/10/oct-5-2017/
Jan 11th 2018
http://crownpointenergy.com/2018/01/jan-11-2018/
Aug 20th 2018
http://crownpointenergy.com/2018/08/aug-20-2018/
And most upto date:
http://crownpointenergy.com/2018/10/oct-5-2008/
We can see cautionary statements that the well might deplete quite quickly.
We can see that some wells have been more successful than others.
There are so many things that can go wrong, starting with a Chance Of Success (COS) of around 30%.
Not an investment for widows and orphans or your life savings.
You research and decide if the investment suits your criteria, what you do not do is cry like a baby when setbacks occur.
Oil & Gas Exploration Investment is for grownups!!??!!
There are NO guarantees of success or limitless wealth.
But I thought that I would share with the B/B as to what I had found.
For all that I know, others may have seen this operation before me.
WT
v2cola
To become eligible for Main Market listing, a company must demonstrate some prescribed requirements.
1. Have a certain MCAP, Echo is currently £44M, Hurricane who is in that process is £964M. So we fail on size.
2. Normally a company must be in existence for at least 3 years, we fall seriously short of that.
Might I suggest that before suggesting the untenable, you might do some research.
Otherwise some investors might get misled.
Echo is a small company with aspirations.
We have not as yet, discovered substantial "provable" oil or gas, we may feel that we have but until we have had appreciable or considerable hydrocarbons flow to surface that can be quantified, no value can be attributed.
Until then, the market cannot give us a value that we think is credible.
Aspirations or hopes will not move the SP.
We have 1000 bbls / day equiv. hydrocarbons but that is not going to rock anybody's world.
Let's see how the 2 fracking jobs go, the possible sidetrack and the probable short term oil drill goes?
Phase 2 and 3 of the workovers have not been announced
And a shedful of data reprocessing and seismic.
Lot's of work to do, in my opinion lot's of good news to come.
That is all for the future, for now let them get on with it.
Be patient.
WT
Today SDX down 4.8%
Hurricane down 5%
Sound Down 1.8%
All good, well run companies.
This malaise is affecting many, I do not understand it and my response is to be patient.
You could of course sell and buy back when the share reaches a lower level.
That's a risk that I am not prepared to take.
So sit tight or bale out!!
In my case, I may top up in the not too distant to average down and bring my holding within the range of 7 figures!
JoeCreed
I have looked and it would appear that a well in Bolivia would cost $40M+ and take over a year to drill.
That does not seem to fit into Echo's stated DNA.
Better we use our technical ability, as in Argentina and add more certainty to the project and then bail out with a tidy profit.
25% of a well, at $10M would fund 2 Tapi Aike wells with TCF potential and give us 50% rather than 25% of the action and be completed in say a month rather than 12+ months.
Just a Saturday afternoons musings!?!
WT
Hi Bigideas
You are very kind.
Echo seem to have "lucked in" on a terrific portfolio.
But when you have a high quality team, luck does seem to follow.
Like everybody else, several of our recently drilled wells appear to have the possibility of "cash generation," given that the stimulation exercise goes well. There is also the possibility of a side track being done on another well, chasing an accumulation. I am happy with progress, there is no such thing as a "slam dunk," rarely do operations in exploration go as one might wish, but we do have the chance of additional production over the coming months. And if those prospective revenues add to the pot for drilling elsewhere, that can only be a big fat plus!!
Some would do well to remember that we are still in the embryonic stages of Echo, being a exploration company there must be disappointments ahead of us but I am confident that the company has a great future ahead of it!!
bobby
As you imply $5M is a terrific deal when the possibility of TCF quantities are on offer.
Having watched (again) that video, a question struck me.
The Repsol well, currently being drilled has been ongoing for a quite a while.
Does anybody know what the quantity of hydrocarbons they are targeting and what is the cost of their well?
Does anybody know what Echo's share of a well on our prospective block might cost?
WT
Hi Bobby
My recollection from Ms MacAulay was $1000/metre for onshore Argentinean well presumably including wellhead, xmas tree and completion costs.
If anyone requires a definitive answer then I did post her email address, so you could email her directly rather than guessing here.
WT
Ms MacAulay cautioned that the workover flowrates will take a little time to settle down.
Whilst I applaud your enthusiasm for news, better to wait for accurate and sustainable numbers.
And I really hope that we are moving forward and that the market factors that in.
We know that the new rates will not be 600 bbls/day.
If, for argument say 200 bbls/day is the new combined flowrate.(optimistic)
And we get 50% minus our share of cost of workover, CGC carry, loss of production during workover, taxes.
Assuming sale at $65/bbl X 100bbls/day X 365 = very approx. $2.3M per annum minus the above.
A great addition to the bottom line but will not even fund 40% of a well on Tapi Aike.
And my numbers are pure guesstimates!!
I even may have erred on the side of fanciful!
Best to wait and see, but no pot of gold here. Just a nice bit of additional income.
Dodger777
To have a well run E&P company, it is imperative that you recruit high quality, experienced individuals.
Echo has done that across the board.
Even a cursory investigation will confirm that.
And if they are not adequately rewarded, they will not be retained.
There are a number of E&P comanies that I would not touch with a bargepole, such is the inadequacy of their Executive Team. Happily, this does not apply here at Echo.
If you think that from a standing start one year ago, you are of the opinion that they have not achieved very much, then might I suggest that you sell up and find a Company that satisfies you.
I have no small investment in Echo, I am delighted with their current portfolio, their aspirations to develop it and their intention to seek other opportuniies. Martin Hull, ex Rothschilds for 2 decades would not have joined Echo if he was not convinced that it was not a high quality operation.If it was good for him, then it is good enough for me.
Julian Bessa has a terrific track record, did you see the ProactiveInvestors interview? Have you read his CV?
Like most, It is dissappointing that the Echo SP is not trading higher, but when I look at Hurricane and SDX and they are extemely well run companies, they are suffering a similar malaise with their SP.
So what rabbit do you want the Echo team to pull from the hat?
With 30 years of experience with 3 Oil Majors I think that they have done remarkably well.
I think that they communicate far better than most companies, all you have to do is read and inwardly digest.
The information is there, all you have to do is understand it, given that you have the basic knowledge to put the story together.
I have, and I am more than happy.
Have a good weekend.
WT
I seem to remember that Paul was a little dismissive of the South Ramadan well in the past as I think that was a contractual obligation with not much upside. Virtually a waste of funds!
Just specualting, but what if it has turned into something better?
Wouldn't that be something?
WT
ftsemajorgeneral
I think that it worth saying (once again!) that Echo nor SDX nor Savanah could divulge any new piece of company sensitive information, either at an online session or an open forum. They would get into serious trouble with the Financial Authorities if they did. I did however learn that a blowout on Tapi Aike lasted for 6 months.
Echo are further constrained by Argentinian Financial law regarding what we would refer here to as a discovery. There, I think one must gave flowed oil or gas to surface before one can use "discovery!"
So maybe staining or gas samples are just indicative of downhole conditions?
It's all a steep learning curve!!
WT
Well done LSE, the quality of the video was far better than is the norm.
Echo came off well, A relative tiddler (for the moment) compared to SDX or Savanah.
I got an impression that Echo might be looking in the M & A market, that is of course how SDX got a big leg up with their Circle acquisition. And who knows what is ahead for them when they return after suspension?
We know that we will get workover flow rates within a couple of weeks, good for income and cash for drilling but not going to make anyone wealthy.
!001/1004 by the end of the year. All of this is an inexact science, so I would caution expecting numbers on specific days. That is not the real world of gas and oil. And Volcanic rocks as a productive oil strata is a relatively new resource, so recovery rates must be hard to estimate. I imagine that they would be cautious when quoting numbers.
Lot's of info there, I listened to the full 90 minutes. I will do it again to squeeze every piece of info from it.
WT
MrAndyEFC
Rather than post questions on this B/B that none of us have the definitive answer to, might I point you in the direction of the Echo Energy Contact form and the email address of Ms MacAulay to whom you might wish to ask your question. See below:
https://www.echoenergyplc.com/contacts/
f.macaulay@echoenergyplc.com
Might I add that there is an enormous amount of information that Echo have published.
The RNS's are hugely informative if you can fully understand them.
If not, Google or Wiki is a great resource.
Also the CPR is a terrific place to start.
And all the interviews that Fiona has done, the Investor Presentations and Julian's Technical update will get you up to speed.
Any investment is a hard slog at first, but ultimately rewarding if you are prepared to put the hours in!!
At least, that's my experience.
WT
stix40
The email to me from LSE indicated 24 - 48 hours.
So, presumably tomorrow at the earliest or possibly the day after.
Thinking from the LSE viewpoint, I think that they will try and get out as soon as they can; from the promotional stance!
WT
Hi bobbyrash
The Tobifera being a volcanic structure has no little potential. In fact Hurricane, West of Shetland are targeting an absolutely missive one. I think that I read somewhere that this interval is producing in either Argentina or Chile.
I refuse to get over excited, in this form of investment there are an absolute myriad of factors that have to align before monetisation occurs. But there is substancial potential here.
It saddens me when I hear that someone has mortgaged their home to back an investment or thinks that they may be driving a Ferrari by Christmas. I like what I hear from Echo, they have got a very high quality team in place and each one of them would not have climbed aboard this bus without being very confident that there was a very good outcome ahead of them.
Shouting for RNS's achieves nothing.
Echo are very tightly constrained as to what information that they can release.
And I do not think that they will take anymore time to do a task than it requires.
If any of you think that Echo are taking their time, then you haven't worked in the oil business.
Safety is important to Echo, as it is to me.
I have known colleagues injured or sadly killed in the pursuit of hydrocarbons.
I read that blowouts had occurred on Tapi Aike sometime ago.
Take a look at accidents elsewhere.
https://www.youtube.com/watch?v=J5ne0I-Yj-c
A quick drill is cheaper but sometimes has a cost far greater than potential savings.
Echo are using highly experienced contractors through CGC, that's a plus for me.
They will get these wells fracked and tested and if commercial or better, on production and adding to the bottom line as quickly as they can.
And they will tell us as soon as they can, why wouldn't they?
Of that I am confident.
joelebeau
Nice one and thank you for that!
I had inferred that it might have been "thousand" from the context, but I really appreciate confirmation.
WT
As I see it from the article made available to us earlier today:
https://total-market-solutions.com/2018/10/15/echo-energy/
Targetting
EMS 1001 60 Million barrels of Oil
ELA 1 40 Billion Scufs Gas (possible future Springhill sidetrack, Tobifera to be tested and into production quickly if successful.
https://ir.euroinvestor.com/Solutions/echoenergy/3748/news/newsArticle.aspx?storyid=13945121
All the information is there if one cares to read and understand it.
If you don't understand it, then ask.
I worked for over 30 years for 3 Oil Majors and I am still learning all of the time.
Like I did yesterday with regard to the expression $30/- but no one on this B/B responded.
So I messaged Malcy for an explanation, I have as yet not had a reply.
WT