Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Is Mohammed Seghri the correct person to be CEO at the moment, whether temporary or not? Is his link to OGIF not a conflict of interests? Are there now two classes of shareholder in Sound Energy? Are shareholders being let down by all directors, whether staying or going?
Fred Lacuha (General Counsel)
Mr Seghiri is not employed by either OGIF or AFG, the investment bank which manages the private equity fund. He is the ex manager of OGIF and obviously has strong relationships to our cornerstone investor which should serve as a positive. As with every director when a conflict of interest is identified it is flagged and the conflicted director does not play a part in that decision.
Great questions Ash!
Will this deal give us the funds to properly explore the Tendrara basin?
Garry Dempster (VP Finance & Commercial)
The intent of this deal is indeed to fund the development and exploration at Tendrara.
What information would be used to decide the next drill location? How much confidence is there in the seismic we have for Tendrara?
Brian Mitchener (Exploration Director)
We have a combination of better quality new seismic and older vintage seismic (but reprocessed) which will be critical to enable the unlocking of the basin with new wells.
Is Marco Fumagalli the correct person to be the chairman of Sound Energy at the present time? Is there not a conflict of interest when he is connected to the bonds/debt and would be interested in passing the "agreement" solely for the purpose of attaining cash to pay off the debt? Is this not putting the integrity of all other directors at risk? Is there not a dereliction of duty on the part of all directors, staying or leaving?
Mohammed Seghiri (Interim CEO)
Marco is interim chairman while a suitable replacement for Simon is found.
When can OGIF increase its stake in Sound Energy if it chose to do so?
Mohammed Seghiri (Interim CEO)
OGIF like any shareholder can buy or sell shares as it chooses.
Why can’t the payment be paid as dividends to shareholders?
Mohammed Seghiri (Interim CEO)
This is a possible outcome but the Board will decide on this nearer the time. Right now we are focused on securing the deal and then getting it approved.
At what stage does Onhym start paying its 25% of costs? Would it be before first gas?
Garry Dempster (VP Finance & Commercial)
ONHYM has to pay its share of concession costs from the point of concession award. So they are already required to pay their share.
Will any of the money payable in the proposed deal be paid to shareholders ? If so, when will this be paid and how much per share?
Garry Dempster (VP Finance & Commercial)
It is an option. The Board will address it once the deal is closed.
He took 10 minutes to write basically nothing
It took him 5 minutes to type that...
Sidi has sat silently for some time have we got any interest in a farm in from any parties ?
Brian Mitchener (Exploration Director)
I hope that John's previous answer on Sidi Moktar has helped. We are continuing to engage with potential farm-out candidates and we will provide an update when we are able. We are maintaining this as a competitive process and it would not be appropriate to disclosure further information at this time.
Want to hear what he thinks without JP being there...
One finger at a time...
BM is typing again........
He clearly thinks it better to keep his head down...
Yes, thought he might have explained about Te9:and Te10 believed to be gas charged :)
What cash at hand and short term deposits are available to the Company as of today.
Garry Dempster (VP Finance & Commercial)
I'm afraid we can't provide this outside of what has already been announced on RNS.
Could you please provide an estimate as to how much it would cost for a 5 well exploration program based on our current ownership of Tendrara.
Garry Dempster (VP Finance & Commercial)
The exploration well costs range from between $7 and $10 million depending on the well depth, location and design.
Looks like he's changed his mind Joe!
BM currently typing!
A couple of questions re the potential part sale of Tendrara, assuming it goes through in its current form: What is the plan for the cash when received? On reading the RNS and the way the deal has been structured it seems the main focus of the company purchasing the asset is to build the required infrastructure and get to first gas, rather than further exploration. Can you please provide thoughts around timing for both an exploration program and FID and delivery of first gas. Could you also please provide an estimate as to how much of the US$58.5m carried amount will be allocated to each program.
Mohammed Seghiri (Interim CEO)
Questions on the detail of the transaction will be handled when and if we sign the transaction. Nevertheless, we can ensure that Sound Energy team will keep working to explore and to unlock further Tendrara basin.
Will minimum shareholder communications standards be included in the proposed deal with the unknown farm-in partner so that private shareholders do not only have an annual report to rely on for ongoing information.
Garry Dempster (VP Finance & Commercial)
As a listed company Sound will still be required to announce every price sensitive operation and yes Sound would expect to have rights to receive updates. So an investor can expect the information flow to remain largely unchanged.
Question. How many pies di JP feed Malcy over the last five years
What does it mean that the company will be non operational? Where will the company make its profit going forward? Will there be further expeditions going forward?
John Argent (Exploration Manager)
Thanks for this question, let me address the meaning of operator and non-operator in this context. Joint ventures (JV) are fairly ubiquitous in the oil and gas industry with around 70% of upstream investment provided through alliance or JV relationships. Companies will often enter into JVs to share the risk and sheer capital-intensive load associated with oil and gas projects. An oil and gas JV in its most basic form is fairly straightforward. One company within the JV will take on the operator role. The operator has the responsibility to manage and carry out the various exploration and production operations on behalf of the JV licence group and well as providing a share of the capital required. Examples of operations include geophysical surveying, drilling, facilities engineering and construction, all of which have been undertaken by Sound Energy on behalf of the existing joint venture group. The other joint venture participants are known as non-operating companies. A non-operator provides a share of the capital required, and in some circumstances expertise.