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Mentioning GL saying at 7:20 in the interview that deal with calvalley this quarter been removed?
check the interview.
A bit disappointing from SOU. Looks like the Phase 1 timeline is substantially behind schedule. "Our contractor and its sub-contractors designing and constructing plant equipment for delivery to site late 2023, early 2024". That is a very vague estimate given that it's only a couple of months away. I would imagine there is a lot of on-site work involved in installation, assembly, testing and commissioning. "Phase 1 LNG delivery scheduled to commence in 2024". The fact that it says 2024 and not Q1 2024 speaks volumes.
Some of the payments to ItalFluid are tied to the go-live date, so are presumably not a problem. But the bondholder amortisastion payments are every six months starting in December. Looks like SOU will have to stump up for at least one additional one, and maybe two, before Phase 1 revenue starts flowing. Not to mention keeping the lights on without gas revenue for possibly an additional year. When SOU start getting handwavey about deadlines that are ostensibly only months away, precedent strongly suggests that they will come in a mile behind schedule.
Some people just won’t be told…..but anyway, if you need anymore evidence GL=JP and he’s not 1% motivated by SH value (why would you be with such a cult of investors onboard?) is his interview today. Not once did he refer to SH, SH support or the sp, and the kicker is he signs off that they’re in it to benefit Morocco. Like I said this is about the company and by virtue Morocco. He couldn’t give a stuff about dilution to existing SHs. To be honest, nor it seems so existing SH either. I suspect when all is said and done there will be HUGE disappointments and further giveaways if and when the CalVal, drill programme, and Phase 2 funding negotiations are finalised. There were enough breadcrumbs in todays two releases for even the cult members to see that!!
Graham Lyon discusses Interims announced this morning :
https://youtu.be/te_69vlM9mc
As per the farm-out agreement, Calvalley will fund 100% of the TE-4 Horst well costs up to a cap of US$7 million
The prospect is located very close to the infraestructure to be built for the Tendrara production concession. In case of success, it could be developed with minimal aditional OPEX and CAPEX. It will only require the drilling of a few development wells, flowlines and a short pipeline to connect with the central facilities.
The gas will eventually be sold to Europe, according to what was stated today by management:
Note 4 to Financial Statements for 1H 2023:
"At 30 June 2023 the Company has used average TTF prices only since future gas sales contracts the Company is likely to enter into are expected to be priced in reference to TTF and in addition, the Company received an indicative non-binding gas pricing term sheet referenced to TTF"
“The average TTF and NBP gas price projections for the period to 2032 was 14.45 US$/MMBtu.”
Calc of economic benefit for the success case
Gas in place (gross): 260 bcf
Recoverable resource (gross): 50% of gas in place (similar to the TE-5 horst)= 130 bcf
Selling price: US$ 14,45/mcf
CAPEX: US$ 100 million (conservative)
Undiscounted free cash flow (gross): (130 bcf x US$ 14,45/mcf) x (1-royalty 3,5%) - CAPEX US$ 100 million= US$ 1.712
Undiscounted free cash flow (net to SOU):
US$ 1.712 million X 35% X (1- Schlumberger's net profit interest 10%)= US$ 540 million.
Regards
Assume you’ve read the SP Angel note from this morning? Enough said.
And the market cap of ALL of Sound including ALL exploration upside etc etc is 18 million!
value and potential staring everyone in the face here.
From today´s press release:
Note 4 to Financial Statements for 1H 2023:
"At 30 June 2023 the Company has used average TTF prices only since future gas sales contracts the Company is likely to enter into are expected to be priced in reference to TTF and in addition, the Company received an indicative non-binding gas pricing term sheet referenced to TTF"
“The average TTF and NBP gas price projections for the period to 2032 was 14.45 US$/MMBtu.”
We have 195.3 bcf (gross) of uncontracted gas reserves. 68.3 bcf net to SOU, under the farm out agreement with Calvalley.
SP Angel assigned to those reserves a conservative sales price of US$ 9/mcf (June 15, 2023 report).
If we can sell that gas to Europe, the tax-free upside in EBITDA (net to SOU) is:
68,3 bcf X (US$ 14,45/mcf – US$ 9/mcf)= US$ 372 million
Regards
Fernan
Like the man said,
'The next key steps to progress phase 1 include final design, engineering, procurement and installation of the flowline system and associated well head facility equipment for the gas gathering system to transport the gas from the well heads to the mLNG plant.'
Then as if by magic, a tweet of the LNG manufacturing cryogenic unit being installed.
This project in on course to be completed by the end of the year and cash flows in 2024. Cash inflows resulting from the Calvalley deal will address any concerns over finances at the end of this year.
IMO this situation is better than it has been for years here at Sound Energy.
I don’t think some realise this is happening or the phase 2 . I wonder what is happening at sidi maybe another partner or one we have on board already? Hopefully some interesting news soon , please
It's amazing the lengths sound will go to keep the 'work of fiction' in kylie's words of the mLNG project going 😊
looks liek a very real project to me 😊
Https://twitter.com/soundenergyplc/status/1704763169929838785?t=QLq8Mzzx-Upaf-a-X12-Tw&s=19
Good Luck
Location, location, location is the main reason why this could be rewarding. Morocco will be an energy hub for EU and UK. If you have an opinion may be it's worth visiting the area before you make your investment.
Your loss is our gains. Good luck all
This has been a crucial and highly successful interim for Sound even though like the proverbial swan a great deal of the action is going on under the water. With Phase 1 seeing ‘steady progress’ on the operational side as well as hopefully finding a potential partner and of course removing the tax claim much has been done. And of course as Graham Lyon says above the funding for Phase 2 has been laid out.
With all that having been done now they are turning to a fair bit of closing, in the Calvalley deal, Phase 2 FID and it is also good to see that receivables are all in and revenues are due next year. We know that Morocco is moving heaven and earth to ensure the project succeeds and when it does the share price can only increase substantially.
KTF, name 3 things in that RNS that we’re hopeful, optimistic or uplifting from an investor’s perspective. Because I can point to many that signal they’re doing all they can to warn people, allowing them to say I told you so in the very near future. GL = JP.
It’s a strange mentality but you see it all the time. Someone takes a loss which breeds resentment then the person becomes obsessed with wanting said company to fail so they feel better about themselves.
Rubber - the only thing I would correct in your post is the 'she' 😊
She is right about Sound needing more money by the end of the year though.
Yes, I agree with you on that one, it is very odd that Kylie spends so much energy berating a business that she is not invested in. Very strange behaviour indeed, probably a personality defect issue there somewhere, hard to tell, but only a very sad individual would waste their time on a business in which they are not invested.
On a positive note, the accounts show that Sound is now in a better place financially, than it has been for a long time. Well funded with money in the bank, debts cleared and tax liabilities settled.
Sound has a clear plan for the next few months, wealthy established and supportive business partners ready and proven gas assets and reserrves ready to be exploited.
IMO things are looking better for Sound than they have for ages :)
We're just a mere 10,000% away from getting back on track.
Mr Kylie.
Enjoy today for what it is don’t be bitter.
Tomorrow will always be better!
Love life !!
Hehe
Keeptofacts, yes it's baffling that she spends so much time on a company that she hopes will go bust, whilst begging people to sell?. I cannot understand how someone could hate a company so much that they would never invest in, unless she is a disgruntled ex-employee.
Im sure we will get good news on contracts getting signed off soon.