Good update Crude,once the web cam arrives at Tendrara and the ground works start............well I think we won't be able to contain our excitement once we spud. Waiting for results is going to be unbearable. Very exciting times ahead,what a great place JP has got Sound Energy into and a team in place to succeeded. Hit the first well and it really is game on.
CEO James Parsons sets out his view of the current oil & gas climate by stating that Sound Energy are in the 'calm eye of the storm' & posturing that we are a pure on-shore gas play with a strong cash balance & exciting assets to drill - not affected by the current disastrously low oil price. Well worth a listen.
Cabby, Let me, for the sake of you & any potential new investors give you a brief run-down of what Sound Energy are about.
We are a pure on-shore gas play (we do have some Italian off-shore but that's not relevant right now). We are fully funded for 2016 with circa £20 million cash reserves. We are producing revenues that will cover our entire G&A from Summer onwards - so no cash burn. We have two large gas prospects in Italy (Badile & Zabido), one of which (Badile) is awaiting final drill permit. We have a cornerstone investor in Continental Partners who hold over 20% of our stock, some of which was purchased at 19p. Our biggest asset is CEO James Parsons, who is financially astute & innovative & is very dynamic. He is very much about bringing low risk assets into production whilst giving investors access to potential high upside with some pretty big on-shore prospects. He likes to mitigate risk through partnerships. To this end he recently partnered with billion dollar oil field services group Schlumberger whilst building a portfolio of assets in Morocco. We have a 5 well program about to start this Spring. Two new wells (TE-6 & TE-7) will be drilled on our Tendrara acreage with a workover of previously flowed TE-5). Tendrara is a gas discovery with two previously flowing wells (TE-5 & SBK-1) . We have 55% equity & together with Schlumberger we should spud TE-6 in April. The well will be drilling the Tagi formation that is analogous with the huge gas fields in neighbouring Algeria. The license (with SBK-1) to the south West looks so promising that our CEO recently signed an option to purchase block 109, which is adjacent to that SBK-1 well. In fact Shell Oil recently bought into the huge block 189 which all but surrounds our Tendrara & block 109 licenses - that's how promising it is! Whatever gas & condensate that is found Schlumberger get a 50% split with us for covering approx 78% of drill costs - leaving us minimal exposure to our cash reserves. We leverage off Schlumbergers technical expertise & balance sheet. After drilling Tendrara we move on to our other license - three blocks that constitute our Sidi Moktar license. This, again is a previous discovery that has had roughly $30 million plus spent by the operator. The discovery constitutes two wells on the Kechoula structure & all we have to do is an extensive well test tohopefully bring them into production. There is multiple TCF potential on the wider license, as there is with Tendrara. In fact our CEO has more than once proclaimed that Sidi Moktar, Tendrara & Badile each have triple digit sp potential. In the success case Tendrara has an NPV10 net to Sound of £250 million (10 times that in the wider license). So with no debt, a cash rich balance & expert partners Schlumberger, ground works start soon with 1st well in April. This year could be utterly transformational.
Hi all, just invested some cash in 88e and all looks good, with a decent profit so far. I`ve been looking here for a while and reading some interesting posts, can anyone tell me when, news is expected, as i`m quite keen on investing? Thanks
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.