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2p or not £2 ….very soon that’s the question ?
Buy Buy Buy Buy Buy Buy Buy before it does !!
I've got echo's of "hold on to them golden tickets" in my ears... ;-)
"2p or not £2 ….very soon that’s the question ? Buy Buy Buy Buy Buy Buy Buy before it does !!"
I see we have a new chief ramper and they're getting lots of upvotes :-\
Talk about delusions in the desert! Two quid??? SP Angel values the whole of Phase 1 and Phase 2 at 7p per share! And it's not clear what assumptions they've made about the remaining Phase 2 finance requirements. I've no doubt when the Attijariwafa deal closes there will be people buying at 3p who wouldn't buy at 1.5p. SOU may get a good raise on the back of it too. It's also possible they have an "oven ready deal" on the remaining finance just waiting for the senior debt to be finalised. Given SOU's history, though, I would not be remotely surprised to find we're not even off the starting blocks with the farmout. In any event there would be further due diligence to go through. And I can't remotely imagine someone putting up $60m for SOU's share of remaining Phase 2 finance, PLUS a free carry on three drills, without covering their a$$ is the case of drilling failure. That means getting enough of a chunk of Phase 2 revenue to cover their costs, in other words a ton more equity dilution. I also expect the whole thing to drag on for a minimum of another year before Phase 2 construction even begins. Short term price spike and gradual drift back down, with everyone scratching their heads as usual as to why the SP isn't higher. Just my pessimistic tuppence worth which I know everyone's dying to hear :) :) :)
PS, what we need is progressive, innovative financial solutions. Current Management will kill this stone dead for veteran Sound Energy investors if they do a 'Gerry Orbell' on us!. Our one-time CEO ,pre Parsons, nearly drowned us in shares. Say what you will about J. Parsons but he did at least take a different attitude regarding the raising of cash. This is possibly the one reason historic shareholders are still in the game. Once shares have been issued there a very rarely any share buy-backs on the AIM! Debt, however, can be paid back or credit extended, pending production revenue. I just hope they think about their loyal shareholders when deciding on their future CAPEX requirements!
Crude
Hi, I feel the negatives are creeping in if anybody feels this is not going to work out why not sell up? Save on stress levels.
Parsons , I have not got the time of day for , but Graham I have
I think once things start moving we may find buyer’s appear for the other discovered gas , skb is already a discovery, so hopefully Lady Luck will be kind & push us forward… gla
Fingers crossed. Have to say my patience is wearing thin now though.....we are 'pushing on an open door ' ....do we need to push a bit harder?
No stress for me. I can take a reality check from PS. Glad he's prepared to post. Crude too.
The calm before the storm.
My knowledge of shares is limited.but to those out there who knows how to value . What would be a reasonable share price after we successfully sign the deal. I know it will not pounds as it's two years to build the pipeline and generate income. But what would we be looking at price wise 3p 5p any idear
Spencer, it's a tricky one to value (at least for me) at the minute.
you could look at Price / Earnings ratio once they are generating revenue, and perhaps future P/E ratio based on sales agreements in place.
However, this ignores the value of potential upside from exploration, which I believe is huge.
for me a cash generating company engaged in exploring additional prospective acreage for potentially huge discoveries is a very special opportunity.
whatever you do, think market cap, not price per share.
current market cap is a piddly £32 million. compare this to comparable companies and you should see this is very undervalued.
I would guess a market cap in the £200M + would not be unreasonable, which equates to 11p/share at the minute.
but there are a lot of moving parts here. on Aim sentiment is king. remember this went to a market cap of £800M or so from memory.
KTF, you’re last part to your post is what I’ve believed in for a long time,,,,,sentiment,,,,, many holders know the history of this share because many like myself are still stuck with it.
I’ve massively averaged down, now JP is out of the way this is like a new dawn (so to speak) the new board are better focused in my opinion & as far as first impressions go Gl who I’ve only met once came across we’ll & believe me in my job it doesn’t take long to think this is a wrongun.
We all (long term holder) know, fingers crossed the potential & as me are sticking around, good luck all.
Hey Mebo, like you I believe there is a chance for long holders to recoup - and even make money, here at Sound. All depends on how loyal shareholders are considered regarding funding. Anyway, I still hold the memory of our Moroccan trip & those taxi rides - one of which broke down. I enjoyed everyone's company so much & it was such a 'gas'meeting up. Memories & experiences like that are precious. You can't go to a travel agent & book a tour of an oil/gas rig....but we did through 'Sound Energy Tours' & it was superb!
Looking forward to the Coronation: Long Live the King.
Hello Crude, the Moroccan trip was something great to remember ( not the failure of the drill ) throughly enjoyed it & met some lovely people, yes!! That Taxi ride was unforgettable?