Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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120 days = 20 oct , so 71 days till pipeline financing, but I feel the farm out may be released soon , as Morocco wants gas asap & that’s from our Graham!!! Imho
https://www.naturalgasworld.com/sound-provides-update-on-moroccan-financing-search-100138
by the time we've slid some more, that 1 bagger will be lucky if it gets us to much over 2p
Top up time then , it has to pop up soon with all the news , maybe a 1 bagger ? Gla
NOT
back to where we were 2 trading days ago
Very good and informative post and the maths look good even if you wrote math which is the American version unless you are American of course.
One thing that you may of got incorrect though, and that is your statement they are all exploration wells.
They are not , only one is and thats M5 the rest are appraisals and are already showing gas so they are going to Frack the he55 out of them mechanically and hopefully increase the mmcf/d
Not too sure if that alters your calcs
A small step up on a good RNS, not enough to cover the slide from where we were over 2p though :(
I guess a cautious response given that there is still a long way to go
I hope we get a bit more cash than that :)
https://www.offshore-energy.biz/cluff-completes-north-sea-farm-out-deal-with-shell/
Same lot that did this work for us , fingers crossed
Feeling like that too today. Will get excited if we get a good deal
Perhaps I been here far too long or perhaps it’s an age thing, but struggle to get as excited these days as I once did.Hopefully our farm-in partner may just bring something with them to get me excited.
Ps, you summed up how I was feeling much better than me
One thing that does make me think , if this is a large farmin partner & the next drills find gas , could we be bought out to quickly for the long suffering???
Anyone potentially interested in farming into the 3 wells exploration campaign will do basically the following math:
Gas in place for the 3 exploration prospects (TE4, SBK1 and M5): c. 1.200 bcf (best estimate, 100% gross) (see press release)
Gas in place (net to SOU): 900 bcf (75%)
Recoverable gas (assumption): 1/3 of gas in place: 300 bcf (net to SOU)
Recoverable gas (net to farm in partner, assuming that the partner gets the standard 50% economic interest of SOU´s original 75% in the projec): 150 bcf
Net present value of recoverable gas: US$ 2/mcf (assumption).
Potential net present value of the exploration campaign for the farm in partner, in case of success: US$ 300 mm
Investment by the farm in partner to drill the 3 wells (at a cost of US$ 8 mm/well): US$ 24 mm
So, the potential farm in partner should have to decide if the geologic risks justify investing US$ 24 mm to drill 3 exploration wells, in order to potentially discover natural gas up to a net present value of US$ 300 mm net to it.
Regards
Think we have drilled enough dusters , must be our turn for a discovery, we may give some percentage away , but a bid name with big cash would mitigate this ?
Excellent levelling post-Ps and good that you show people the small print before they go out and choose which 4x4 they want to drive.
It is all about the dilution now as you say as the pie gets bigger but our slice is getting smaller
Lyon did inform me that their data is being shared so it would not surprise me that there will be news soon of someone who will take it on as they don't have to seel it that hard hopefully
Also, it's a little bit disappointing and annoying that the biggest potential reservoir M5 has the least chance of success at 21% but it is an exploration not an appraisal and I believe the standard is 17%
Sorry for being the perennial pessimist but I wasn't especially impressed with this. It's going to be all about the dilution. In the previous RNS SOU were pursuing "potential vendor financing, secondary subordinated debt and partial asset disposal options" for the remainder of the financing. Now it's down to one option -- a farm out. It's good that they claim to have parties interested in both the Phase 2 residual financing and the appraisal/exploration plays. But since SOU has no money they will need a 100% carry so could end up giving 25% of their holding away (25% of 75%, since the amount to be raised is approx. 25% of the Phase 2 costs). Also, like JoeCreed, being in a farm out process at this late stage of proceedings doesn't feel particularly comfortable. Nevertheless, it's all progress.
From Marcy........Well someone had to post it!
This is most interesting from Sound where I see signs of a plan coming together and we like the sound of that. This plan appears to be vindicated by the fact that interest is becoming substantial with other companies recognising not only the gas development ability to serve both Moroccan domestic and European markets but also large exploration portfolio which includes plenty of running room.
The cunning nature of the plan has been in getting the planned infrastructure in place in place first, thus being ready for a potentially prolonged drilling campaign which includes two appraisal wells and one pure wildcat at the very least and will surely attract companies with deeper pockets in this highly attractive market.
The Sound share price has been predicated very much on the rolling announcements for the gas development, indeed today there is an update on the financing of the Phase 2 Senior debt from the Attijariwafa bank as well as to ‘mature industry and alternative financing solutions for the remaining Phase 2 development costs of approximately US$60 million net to Sound’s 75% working interest in the Tendrara Production Concession’.
Right now it would seem that the company is starting the process of moving to the next stage of its development and the share price just has not yet reflected this. Indeed I would suggest that it should now start to move upwards, the first point must be a doubling to the 3p level but if this report has any legs at all I would think that 5p or a market cap of £100m would not be unattainable.
Also it’s ready to go , drilling September anyone??
I think icing on the cake would be shell farmin , must be someone big as this rig has been waiting around for a long time ? Or is it me lol
Good news indeed. If anything were to convince me the tax issue will be resolved favourably for Sound this RNS does
I wont get too excited just yet though. I've seen scenario like this before. 1 day of blue and months of red lol GLA though
All sounds positive, but I won’t be suckered into any more top-ups, even through my small trading pot. However, I do now have a Fxxx of a lot of shares. Onwards team sound !
I was feeling a bit upset seeing the sp drop once again, but now it looks like we are finally starting the ball rolling!! I do like the bit that says if the drilling goes well we have lots more to drill asap , gla , been a long road from the big O days lol
The demand is certainly there and we are in the best place we`ve been in for many years, as another piece of the jigsaw slots into place, with hopefully more good news to come soon. I`m certainly feeling more comfortable with all my top ups here and with the big players being cash rich, they will be looking for the next decent prospect. GLA