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I stand 50% corrected
Hi Levelup
if they use the BOOT model if other companies decide to use the pipeline during the 1st 15 years the revnue for use is split between operator and sound. After the 1st 15 years Sound own the pipeline.
"At the end of a 15 year operating period, and subject to a possible extension by the parties, the ownership of the Project facilities will be transferred to Sound Energy and its partners, or to another entity appointed by the partnership, at no cost. "
Sound wouldn’t own the pipeline.
Tincan. The pipeline has great potential. Sound seem to have got all the permissions and environment permits signed off and have the green light but even the present board admit this will be phase 2 of their plans. Saying that any producer in the area would almost certainly have to use this route to get their gas to the European markets so it could be a real money spinner to have such an asset and earning potential for the future. I think the pipeline is 120 km long linking to the Algerian line into the euro grid so it’s quite a major project.
Such a pipeline would be a must for not only sound but other producers in the area and is a huge undertaking so will require some serious funding or partnership deal with a large producer. Because sound seem to have all the permissions already in place then this would be a very attractive proposition for investment. Still although it’s got potential for the future, the board realise that the priority is to get to first gas in the meantime.
Looking at a very large picture here !! I do wonder about shell,repsol&connophillips around our area now ,have all three been in our data room and seen interesting things maybe ? The other thing is the pipeline may also be used by the for-mentioned , but I feel lots more in our own area to find first ..... long road it will sadly be , but I’m in till the end / nothing to loose now , so please give Graham a chance. Gla
Agreed, he could be a remaining bad apple
It’s JP’s best buddy Marco who my concerns are aimed at. I just hope Graham turns out to genuinely be looking for shareholders best interest.
ps, yes it is going to be a rocky road to get to first gas. Sound is a small company with limited resources so will always rely on loans / partnerships and these things bring the uncertainties which you and others refer to.. I do feel some sympathy for the present board in that they will always be criticised for dilution whether it be through debt for equity deals or partnerships etc and their options are somewhat limited. Graham has stated that he is confident in signing some deals this year so let’s give him the chance which he deserved to deliver.
Ok, perhaps we finally agree. It's gonna be a rocky road. Fingers crossed, Graham might pull the irons out of the fire.
ps I can’t really disagree fundamentally with what you are saying and in order to get to first gas we will have some form of dilution through partnerships I think. The ONNE contract if signed off is lucrative though and will stabilise the company and give it some legitimacy when the gas actually flows. At this point the company will be relatively stable due to the long take or pay contracts which will hopefully be in place and I’m sure at that point the SP will be in double figures. What I am less certain of is how far into double figures that will be and how far the share price will move on after that. The second phase of developing and building the pipeline will take a huge amount of money to complete and it is very ambitious for a company the size of Sound so it would require partnerships again which could lead to further dilution but the rewards would be great. This is only my opinion and feel free to shoot me down but I do genuinely think we are on the right track. The CEO did say he was confident of signing a few agreements this year so let’s see if he delivers.
You just seem to be very loose with your numbers and timing. You said "if sound are positioned for first gas then the SP would rocket into double figures with ease". But after the latest 20% giveaway, Sound's entire share of the TE-5 horst with *NO* further dilution is barely worth double digits, even if it found the money to develop it (AFTER finding the money to pay its debts). You said the "board have enough funds to take us well into next year".... but they don't. And you said we have a "multi trillion cu ft asset" when, in fact, our share of discovered resources is 0.17 Tcf.
The bottom line is that we currently have no clear route to get to first gas, but even if we successfully negotiate that torturous path we will then need exploration and significant further discoveries to establish any sort of decent value. You would need multiple years of everything going right for SOU, against a history of everything going wrong. That is why the share price is where it is, and why it is not going to rocket to double digits this side of 2022 nor probably for several years after that.
Ps I’m not that worried about a little dilution. I fully expect it through partnerships etc but I also realise that’s the pie is big enough to return reasonable shareholder value still. I’m a pretty good judge of character and will agree that Parsons does not come across as someone I would trust but it is my belief that Graham is a different animal and someone we can believe in and so much so I did top up below 2p admittedly.
ST123: "ps get over yourself. None of us know for sure the exact outcome but it is my belief that and as I’ve said previously that we are more likely to succeed than fail."
Sure, Ill shut up now. You've pretty much confirmed that your belief is not backed up by any reasonable argument. It doesn't give you pause for thought that you yourself are down 50% through believing something the market doesn't. You believe the CEO (who just gave away another 20% of your equity) will pay for everything out of income before it exists.
seems a lifetime ago that this was valued around 96p with prediction of a fiver. Good old Parsons....Be ecstatic at 5p now. GLA.
Pontcanna there are no experts here just posters who take themselves far too seriously
ps get over yourself. None of us know for sure the exact outcome but it is my belief that and as I’ve said previously that we are more likely to succeed than fail. I can see we have a journey and think we are on the right track. I’m not really interested what you or others think of theses opinions as they are just that opinions but I am hopeful of seeing a return on my investment for sure. In Graham we trust.
ST123: "If Graham believes that it’s possible to eventually pay the bond from the income then who are we to question it."
You surely can't be this gullible. We KNOW that the bond comes due before any possibility of first income. We KNOW that if Graham had already renegotiated the bond it would be a material fact that has to be disclosed to the market via RNS. It hasn't, so he didn't. Therefore, what Graham believes is just that -- a belief. Who are we to question it? We're the people that listened to all the things the *previous* CEO said he believed ... to our cost.
I've no problem with optimism. I've no problem with giving the new CEO a fair crack of the whip. What choice do we have anyway? I've even no problem with positive statements from the CEO. That's his job. But your claims that we are highly likely to succeed purely on the basis of those statements flies in the face of the facts -- nothing is conclusively agreed, we are in dire financial straits, and we've just given away 20% of the company for a pittance.
Pduk how can it be misleading quoting Graham from his recent interview. If Graham believes that it’s possible to eventually pay the bond from the income then who are we to question it. I think he is in a better position to understand what’s going on compared to your hero Trellis. Anyway I have no need to defend myself as any figures that I have quoted are backed up by numerous press releases so no worries there. I am still confident we are on the right track so the mantra remains in Graham we trust.
You're still trying to mislead people, Sharetrader123
"pduk I was more thinking about the facts you have left out such as when Graham states that the bond could be paid off with the money that they would be generating."
As pointed out to you by myself and various other people several other times now, if the 20 Million bond is due MARCH 2021 but we are, at the very best case, generating cash by DEC 2021, how do you propose we service that debt?
Graham may say many things, just like James Parsons, rather like his no dilution statement but talk is cheap. I , maybe like others, have nothing to go by in order to trust him.
I'd suggest you do some actual research on this company instead of waffling rubbish to others in order to 'sharetrade'123
Oh, you missed responding to ps200306 post to you
"Would you care to enumerate the positive actions, ST123, or did you really mean "positive utterances"? In Graham's recent video appearances he has said that the following are the crucial things to haul SOU off the rocks -- sort out the bond, raise the finance for LNG and find a contractor to deliver it, complete a gas sales agreement."
As before, be postive, by more shares but lets not try and kid people who have been screwed over here already.
Pontcanna. Busted? I’m just a mere shareholder such as yourself. I will certainly will not be moving on and be assured I will be here until we reach the promised land. Enjoy the weekend. In Graham we trust!
At the end of the day we all just want to make or recover some money. Hope everyone has a good weekend.
pduk of course I appreciate people’s journey and how some investors have been mislead. Any figures that I publish or quote can be backed up so no worries there. After all this is just a forum of opinions and mine is just a belief in where we are going.
Sorry to disappoint you, Sharetrader123 but that pin point commentary wasn't delivered by me but by ps200306, unless you're still spewing at my comment to you some 6hours ago. Take a deep breath! All I ask is that you appreciate peoples experiences and journeys whilst not sprouting false information. Have a lovely evening and weekend.
Pduk sorry meant to say “are” more likely to succeed than fail not arn’t.
pduk I was more thinking about the facts you have left out such as when Graham states that the bond could be paid off with the money that they would be generating. Look I have no doubt that we will suffer further dilution most probably through partnership agreement so etc but the pie is still big enough to add value to the SP. The ONEE agreement will generate over 80 million dollars in the first year alone and the length of the take or pay contracts ensue a stable 10 year funding stream. I do not profess to know all the answers other than believing that we aren’t more likely to succeed than fail and all that I have seen this last month has only strengthened this view.