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Expel should be Expo!
Autocorrict plying up again!
Expel you should stick to cutting and pasting the technical stuff that you are known for and makes you look knowledgeable. Leave the financial stuff to people who know about company accounts because you lose credibility when you post erroneous financial stuff ;o)
GLA
Scotforth written all over his posts, very sad Graham, you've been rumbled.
When 250SBW? first started posting he said he had a friend who was exceptionally knowledgable in the O+G, that they collaborated together, and that they've made loads and loads of money, I would suggest that Exploration is that person and that they are two geeky characters out to exploit investors for their own ends.
There are enough idiots posting on tbis BB. Myself included. Could you please leave the personal attacks to us please. Yours, degrades what would otherwise be an informative debate. No offence itended
Oh - and it is ironic that your username is n4apound and you’ve only ever posted on the SOU BB. Haha well done genius!
There is no counter argument - his figures are not accurate and that has now been pointed out.
Yes they probably need to sell - but I don’t think anyone would deny that - hence the marketing process and the preference to conclude before y/ez
Not sure how that makes someone an idiot.....but perhaps being being “said” idiot I wouldn’t understand.
Explo this is what happens....someone raises a concern and people come running to shoot you down without even considering a valid counter argument....
Never argue with an idiot as they say....
If 10 had been successful they would have had the same cash in the bank and the same level of debt......so what is the point you are making????
$14m two months ago and $2.7m added a month ago.
Yes there are liabilities - and they are secured and will come payable. But if a plan is in place that is reasonable to the creditors then the debt will be extended to accommodate. This is all very common - but yes they obviously are keen to sell and have said several times that they would like this concluded before y/e.
This is not new news.
So what’s left in the bank?
And what are the liabilities?
So 6 months of activity SOU have spent $11m which will have included approximately $6-7m for the drill and well test. So the cost of other operations is approximately $5m and they have now cut costs by approx 30% and have raised $2.7m.
So it is highly inaccurate.
£20.5m is just under $25m so the cash burn is SIGNIFICANTLY lower than you suggest.
They are also now not drilling, and have cut costs. You are incredibly transparent.
You’ve posted this twice before exploration- word for word.
And what is the exchange rate??? £20.5 is not $30m.
£20.5 is just under $25m
Jobbinsci, fair enough
Cash was $14 million as on May 14. But at December 31 2018 cash was £20.5 million, call it $30 million so the cashburn was/is pretty steep. And trade payables from TE-10 would be outstanding.
Based on previous annual PLC overheads, the PLC spend rate for the remainder of 2019 will be, say another $6 million. Then there is the $2.7 raise.
So that means money left is $14 + $2.7 - $6 = $10 million. Not enough to pay for Sidi Moktar seismic.
But the $20 million loan is secured against Sidi Moktar, so they can’t lose that - unless the security is transferred to JP’s house etc.
All I’m trying to say is that Sound has to a) sell fast and b) juggle our money to stay in business without falling foul of Onhym and the Companies Act
Was the Explorerror something to do with risking the discovery? It was something along those lines anyway........
Exploration.
How do you know so much about a lot of subjects in Morocco?
Where do you work please?
From memory SOU had 14m dollars in June. They raised a further 2.7m dollars (or so in July) So solvency is not an issue.
Longwait
No conspiracy involved. Just describing how companies run petroleum operations according to the law in Morocco.
See Clause 6 of the Association Agreement. Sure as night follows day, Management Committee meetings for Tendrara occur every six months. Accurate minutes are prepared and distributed for approval by all participants. Same for Sidi Moktar.
You can see the penalties for non-payment of contributions to budgeted operations. But I’m assuming there is little Sound can propose without plenty of cash in the bank or they wound fall foul of the Companies Act.
http://www.onhym.com/pdf/en/Model_Association%20Contract.pdf
Nice to see your true colours Exploration. You’ve come up with something similar before.
I’ll try and remember the glaring error that saw you disappear for so long. Maybe someone else can remind me/us sooner?
Another share dilution or sell by date? What options?
Just projecting estimates from JJ Traynor’s Malcy interview. There must be a point when liabilities and commitments imply more money is needed. It could be as soon as November - so Sound must sell before then or risk wrongful trading.
Another conspiracy theory...
Panic? Doesn't appear very promising Exploration If that's the xase. Any elaboration from you?
Follow the money.
Maybe the main reason for the ‘pause’ and start of marketing is that there is insufficient cash in the bank to pay all the TE-10 demobilisation bills, re-instate TE-8, 9 and 10 well sites, maintain the corporate fixed costs (acreage rentals, insurance, sevenoaks, etc) AND remain solvent until end-2019. My guess is that there isn’t enough cash to drill TE-11 and acquire the Sidi Moktar seismic according to the agreement with Onhym.
Sound is obliged to submit annual work programs and budgets for the coming year. If insolvency is a consequence, what will they do?