Last blog from Fort Lauderdale today, it’s been quite a week and looking at the share prices is enough to make one cry, there is enough hope out there though to offer inspiration.

Oil remains weak but yesterday’s Opec + meeting agreed to cuts of  an additional 1.5m b/d, this is clearly dependent on Russia who will join the Ministerial meeting today. Expect the usual epee work but as usual the downside risk also applies toRussia…..

Hurricane Energy

A GWA JV agreements update in which a new cost allocation agreement to update the terms of the 2018 farm-in has been agreed. The amended terms are that the JV will build-out the equipment and materials required to tie-back a single well from the GWA to the Aoka Mizu on a 50:50 basis with an additional net cost to Hurricane of $20.5m. All of this kit is to be held in storage until tie-back is sanctioned.

Re WOSPS, while Hurricane has no current plans to proceed with installation if they did decide to proceed they would bear 100% of associated costs of c.$62m and reimburse Spirit for related gas export past costs up to 31 Jan 2020 (ex carry) of approximately $18m only where installation occurs prior to GWA JV approval of phase 2.

If at any time Phase 2 is approved and a GWA tie-back to the Aoka Mizu it will benefit from the original terms of the 2018 farm-in th rough retrospective application of the carry in the proportions originally agreed.

CEO Robert Trice says, these amendments give us greater optionality relating to the gas export while preserving the carry value of the Spirit farm-in in the event that the GWA JV partners proceed with a GWA tie- back in the future .

It is worth noting that the Lancaster EPS is currently producing 20,000 b/d and still proving positive the underlying story of the area. I am very much looking forward to the Capital Markets Day.

Echo Energy

An operational and corporate update on production on the recently acquired assets in the Santa Cruz Sur onshore Argentina. February average production was 2,410 boepd including 561 barrels of oil and condensate and 11.1 mmscf/d.

The company has now sold in February two cargoes of oil and condensate with sales of €33,424 at an average price of $47.90. Deliveries of gas continues at a price of $2.72 per mmbtu albeit within a substantial range and will continue to increase as the company moves into the higher priced autumn and winter months .

Although production is in line with board expectations but in the light of recent volatility the company is putting in place an additional unsecured loan of between $0.4-1m.At present the company has cash balances of $1.4m with another cargo to pick up in March, under current market conditions it is an eminently wise move to prepare for working capital needs in due course.