George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
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Expect some sp movement by the time Santa arrives.
'This is a major industrial project in Morocco and the local interest comes as no surprise, with the parties now seeking to negotiate binding terms for the phase 2 senior debt before the end of October.'
PS, that’s probably the most positive I have seen you on the SOU board, think I’ll buy a few more today :)
Interesting valuation update. Value of the core assets has been downgraded due to the tax bill and depreciation of GBP vs USD, but upgraded due to a higher forecast Brent price, leaving the value pretty much the same. Also interesting to see them forecast that SOU can give away 25% equity in TE-5 in return for the remaining Phase 2 funding requirement, and still keep the same valuation due to lower risk. That's somewhat reassuring for those looking out for further dilution.
Also interesting to see new valuations for the exploration element, premised on a 30% farm down of interest in return for 100% carry on three wells. I would call these pretty speculative (as indeed does SP Angel) based on the recent drilling track record. Only SBK-1 with its smaller accumulations looks like a solid bet having previously flowed gas, while TE-4 looks like a much longer shot (having previously failed) and Anoual is a wildcat and Sidi also a relative unknown. Nevertheless it's still interesting to have these, and if you let your imagination run wild on the *unrisked* numbers ... well it's enough to drive this board back to the ramptastic speculations of former years ;-)
Well I’m not sure , but how much is a tcf worth now , is it £1.50 or 1.5 p !!! This is going to be a long road . Big question is will I live to see it , some I believe have not already. Gla
A tweet! very good, we got a tweet. Tweet tweet.
https://www.soundenergyplc.com/media/bphbexwi/sou-2022-08-17-morocco-update.pdf
Sound Energy is a transition energy company with strong ESG credentials and a clear route to first gas production and revenues in early 2024 through its low-cost onshore gas development in Morocco.
We have updated our financial forecasts and risked NAV to reflect recent news flow. We reiterate our BUY rating with an updated 7.3p/share price target.
Tweet……
I think we need some news Graham , this is like paint drying, I’m sure one morning we will get a surprise, soon be Santa time .
https://www.reuters.com/article/ukraine-crisis-spain-energy/new-gas-pipeline-linking-spain-to-france-could-be-operating-in-8-9-months-idUSS8N2YF0KD
This pipeline will prove to be very usefull for us in the long term. I hope we will be able to take advantage of it, in order to sell our future gas production in diverse european countries, aside from Spain.
Regards
I see we have a rig on contract with these guys , anyone know how much it costs , waiting for action? Think we have a well that needs drilling before the end of December, so chop , chop lads gla
It’s only a matter of time?
https://northafricapost.com/59718-europe-rushes-to-africa-for-gas-alternatives-as-dependence-on-russian-gas-dims.html
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