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Koozer, the reality is now that people want the drill the bit in the ground without the realisation of how that could be paid for.
And Jones, AFC, now double that what was few weeks ago, if had given me some confidence already pulled back a huge loss and is more legs in this stock. EML, also long term 12 months could save a few from disappointment.
Least a few now mention that this company eventual work for Morocco. More drills equal debt, equals repayments and perhaps paid for by gas sales equals zero profits.
KTF. I qoute;
'I suspect I am not the only one who invested specificall because sound was an EXPLORER.
I didn't invest to receive 15 plus years of dividends'
Two points, 1) That is why the CEO was, is, The Failure, gave up, and put the co. up for sale, when now almost everyone says, to unlock the true potential, we should have been drilling more wells, 2,3 years ago when we had cash, or could have raised cash a lot more easily than now.
2) The majority company will want to get to 1st gas, hopefully ASAP. SOU SH's ( except the 25% owned by OGIF) will have no say in what , where or when it drills. If SOU want to continue with SM, it will go it alone, and wait til 1st gas before it will receive the 2nd tranche of c£33M, by which time SOU will have failed to comply with the License Agreement, and will have to relinquish. It is still my opinion that JP will want to get his greasy fingers on this SM play, and has been planning it for a few years. But, we will find out in due course for sure. Talkk of divis is #dreamsinthedesert. SOU's holding will be either 23 or 14% in The License, and SOU will get their prospective %age of profit, not EBITDA, from the majority company in their endeavours. It will produce accounts, under 'Guidelines' not Regulated Rules. If investors think these will be prepared as a benefit for SOU SH's , they will believe all that the Failure has ever said.
Audible energy - more drilling means more dilution and we will get screwed more as the geology in morocco is rubbish. remember go back to foundation, if seismic data, current so called find was good we would not be sitting at sub 4p. Fact.
you say "If more drilling does happen this only eats into any return that shareholders would have got"
I suspect I am not the only one who invested specificall because sound was an EXPLORER.
I didn't invest to receive 15 plus years of dividends.
AFC up again, while minnows weep the strong get deep. More in this share as ever only want those whom lost funds to gain them back.
If more drilling does happen this only eats into any return that shareholders would have got. So, if you want more drilling be prepared to never see a divvy. And the loans to finance the drills acquire interest, etc.
yes oilpimp i agree with you.
I am very hurt with how this share has played out, i showed inexperience and paid the price heavily. The tip is never wait for the end game, make a profit and move on in AIM. I would never agree to do more drilling as the geology isn't worth the money or repsol/shell would have snapped this up.
I assume them shell are not renewing their license area next to tendrara then, poor attempt kooozer
Koozer, this is why we need to drill more holes in the sand to unlock the basin as who would be interested in buying dusters. Problem is finding the solution and capital to move forward after JP has paid himself handsomely for years and spunked all of our cash!! #thefailure
the quality of de ramping here has really dropped with these new arrivals.
you REALLY need to try harder :)
Most people there are underwater if they've held over the past 5 years... Just goes to show that 1) nobody pays NPV these days and 2) the share price DOES matter.
The offer is a 60% premium to the price before the process was announced - that's not a bad result in this environment and I think most of us would now jump at the offer of a 60% premium over our pre-marketing price, in hindsight.
Aren't everyone on that board complaining how low-ball the offer is? Lol
Just to point out when I read the Rns the offer it was in dollars not pounds makes a huge difference. We really are getting ripped off
I would rather have raised cash at this price and gone exploring, whilst developing TE-5 with the existing funding offer we have in place.
Instead with this deal we are losing most of the upside, and any control as to what is drilled and when.
Wh0s- My point is, that if we can't get decent value, personally I would accept a discount now to drill again. Not what I wanted, but that's life.
It'd be interesting to know if the market has turned. Certainly that deal is well below NPV from what I've read. A poster over on AMER:
'This is 10p or £130m under what is the core value for the business and values the prospective resources at zero.'
That's why we need to wait to hear the rationale behind our deal.
sigh..... Soundingoff
SOU announced our marketing process when our share price was 11.2p. At the close yesterday, it was 3.85p.
AMER announced a sale process when their share price was 12.1p. Today they announced an all share deal for 19.21p.
You honestly think it was better waiting for our deal than AMER waiting for theirs? I really thought after the abysmal deal being thrust upon us here, you'd be able to see things more objectively, but it appears you are just as delusional as ever.
Seriously wh0s! Go and read the comments. I think it was was better waiting for our 'deal' than that.
go on shaun - hit me with some logic and facts for once.
which part of my post is either illogical or a lie??
Not saying that they'll be happy with the price - i'm not that close to AMER detail - I'm just that the sale process was run properly, there was communication with shareholders and resulted in a cash offer at a premium to the share price prior to the company being put up for sale.
WhoseDaddy, that is quite a bold statement - it all depends on perspective. I very much doubt that AMER share holders will be expecting or happy with that offer. Just like many here would not have been happy with a low cash offer being accepted. Then again, some are not happy with the deal we have as well.
The trouble we have is that the offer is below expectations and we have a smoke screen of uncertainty around it. Once that has lifted, I think many may change their mind with exposure to future cash from gas sales and further exploration.
Check out the AMER announcement today - entered into a strategic review/sales process the same time as SOU, announced today an all cash offer accepted by the BoD.
That's how you run a sale. Of course it helps if you have an asset that other companies actually want.