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Sound Energy
Sound has announced that it has signed an MOU for a GSA at its Tendrara concession in Eastern Morocco with ONEE, the State Power Company. It appears to have been worth waiting for as it covers the first 0.5 bcm per annum (approx48.4 MMscf/d ) of production of natural gas with the arrangements for further production above this level. (Including up to and beyond the mid case production rate of 60MMscf/d used in the concession FDP) intended to be negotiated in the final GSA. Importantly, at $8.25/mcf it is a very good price even for Morocco.
This price, and the deal which will, once implemented, result in first year gross revenues attributable to the Tendrara concession (100%) of $84m and can only help the economics in the area. Also by agreeing a fixed price for the initial take or pay volumes the Company will benefit from a portion of its revenues not being subject to fluctuations in the commodity prices which in turn should provide higher certainty for the funding needed for the construction of the infrastructure to achieve production. A very positive development for Sound and encouraging for other Morocco players in the UK oil and gas sector as well.
Sound Energy plc
("Sound Energy" or the "Company")
Tendrara Gas Sales Agreement: Signature of MOU
Further to the Company's announcement of 1 May 2019, Sound Energy, the Moroccan focused upstream gas company, announces that it has signed a memorandum of understanding for the sale of the Company's natural gas production in the Tendrara concession in Eastern Morocco.
The Company announces that it continues to negotiate the detailed terms of a Gas Sales Agreement (the "GSA") and confirms that, as part of those ongoing negotiations, Sound Energy, on behalf of its partners, including Morocco's L'office National des Hydrocarbures et des Mines, has entered into a binding memorandum of understanding (the "MOU") with Morocco's Office National de l'Electricité et de l'Eau Potable ("ONEE"), the state power company of Morocco.
The MOU covers the first 0.5 bcm per annum (approximately 48.4 MMscf/d) of production of natural gas with the arrangements for further production above this level (including up to and beyond the mid case production rate of 60MMscf/d used in the concession Field Development Plan) intended to be negotiated in the final GSA. The gas is priced and sold to ONEE at the M04 tie in point of the Gazoduc Maghreb Europe pipeline.
The MOU includes a fixed unitary price for a minimum annual volume of 0.3 bcm per annum (approximately 29.0 MMscf/d or 10.13 MMbtu per annum), which will, once implemented, result in first year gross revenues attributable to the Tendrara concession (100%) of US$84 million. The MOU stipulates that this first 0.3 bcm of production will be both a take or pay commitment from ONEE and a send or pay commitment by the Company. Pricing for the gas above the 0.3 bcm per annum has not yet been agreed and will be negotiated as part of final GSA.
By agreeing a fixed price for the initial take or pay volumes the Company will benefit from a portion of its revenues not being subject to fluctuations in the commodity prices which in turn should provide higher certainty for the funding needed for the construction of the infrastructure to achieve production.
Under the MOU the parties have agreed to use their reasonable endeavours to continue negotiations with a view to entering into a binding GSA, incorporating the key terms of the MOU and construed under Moroccan law, prior to the end of calendar year 2019. The MOU stipulates a 10 year initial term commencing on the date of signature of GSA and automatically renewing for further periods of five years thereafter, unless terminated by one of the parties with one year's notice.
Further announcements regarding the progress of the negotiations in relation to the GSA will be made, as appropriate.
how do people get to trade before the bell ??
great news
And what a lucky punt for the 140k buyer yesterday ......
If there was a delay to the year end deadline the company would have to notify the market via RNS.
So as it stands now, we are on track
Commenting on stocks and shares can at times feel like a character from a Hans Christian Andersen tale, one in particular, "The Emperor's New Clothes" springs to mind every time I read or see the utter ****e constantly pumped on social media by various shysters on both sides of the fence, corporate and retail.
It doesn't take a genius to see the metaphors from fairy tales played out on City of London listed companies by traders and corporates alike who rely on 'greed' to blind 'common sense'. The target being lumpen-proletariat small time mug-investors or as I call them 'the meat in the liquidity sandwich'. The goal is to push the 'tall tale' using various 'ruses/ploys'; such as 'behind the scenes briefings' to certain well known P&D merchants who take a position as well as small fees with 'warrant packages' then go out heralding the news of riches beyond your wildest dreams....
Which brings me on nicely to Nu-Oil & Gas (AIM: NUOG) the current nudge, nudge, wink, wink is in full flow not least on the BBs and twitter sphere. NUOG are a shell they have absolutely no value whatsoever other than there listing value. The old Board of Directors are being paid out, then kicked out, with a new team set to come in post GM ratification. The 'new deal' is deliberately structured in such a way that a select group of Novum placees (no more than 4/5 individual connected investors) are taking £1,000,000 of stock at a 50% discount to today's SP, while a newly formed corporate entity holds £2,500,000 of loan notes (again at a 50% discount) to flip out as and when you 'the meat in the liquidity sandwich' are buttered up into believing in 'Fairy Tales'. Mugs buying in at 0.075p are paying a 50% premium to that placing and loan note package. £3,500,000 will be flipped out into the orchestrated rise. A rise that will be predicated on a 'hope value'.
If by know you haven't worked out the implications then let me spell it out. You're starting a race with a handicap. You can never beat the corporate flippers because they have a 50% head start with access to the news flow. If today you were 20% down on your stake bought at 0.075p they would still be 30% up. It's a race you can never win.
'Weaver' Fumagalli?
The company holding the £2,500,000 loan notes are C4 Energy Ltd. That paper company is the brain child of one Marco Fumagalli (Continental Investment Partners, Sound Energy, Coro, Echo) and Mr James Parsons (JP) (Sound Energy, Echo energy and Coro). Both are connected at the hip as is Mr Andy Dennan proposed director NUOG, (current CFO & Director CORO, Sound Energy Holdings Italy Ltd, Alpha Growth Plc, Baron Lux LLP). I know them all, have met them, broke bread with them and talked all things O&G with them. They're decent people in their own way. But as corporates go I wouldn't trust them with a 'birds nest'. They are 'corporate bastards'. NU-OIL, at this stage of its evolution, isn't about finding oil or gas in Cuba, Mexico or some far field of a forei
Nice 1m buy full ask
Price monitoring
Into the 20’s
Solid buying
19p paid
Starting to look at a bit leaky to me.
8.2% up
Some chunky buys
700k and 350k
1.65 full ask paid
Good day onwards to 2p
Echo Energy
Echo has announced a proposed acquisition in Argentina with a subscription, debt facility and issue of warrants. It has entered into a binding SPA for the proposed acquisition of a 70%, initially non-operated WI in the Santa Cruz Sur package of five mature producing blocks in the Austral Basin from PGR adjacent to the company’s own Tapi Aike exploration permit.
The package adds material production and diversifies the portfolio and will produce ‘material cash flow’. Existing production is 3,761 bopd in 1H 2019 (2,633 boepd, including c.500 bbl of oil net production to a 70 per cent interest), underpinned by strong local Argentinian gas prices. 1P reserves of 4.3 mmboe +2P of 13.7 mmboe (net to a 70% interest). Certified 2P reserves are given a value of $44.5m, non-contingent consideration of $8.5m represents a discount of approximately 80% to this 2P reserve valuation.
There is significant potential to increase production through workovers and the up-coming Campo Limite exploration well which is expected to be part funded by the vendor. In the 12 months to December 2018 the assets generated unaudited revenues of $31.9m net to a 70% interest.
Echo is paying $7m cash and $1.5m in shares at 2.91p (a 6.6% premium) and there is provision for the payment of a further $1.5m if a CPR shows an increase in reserves. In this process the company has raised £9.17m of which £4.85m in equity at 2.5p and a €5m secured convertible debt facility entered into with Lombard Odier with associated warrants at 3p.
CEO Martin Hull said today that this is a significant milestone for Echo and demonstrates that the company are “delivering on our growth strategy and that the material cash flow gives an optionality in how we finance the business” and that “This value accretive transaction will create a new platform from which to grow Echo and adds many catalysts to our existing drilling programme at Tapi Aike.” This is a smart move from Echo which, by adding production, diversifies the portfolio ahead of the exciting drilling ahead at Tapi Aike.
nice steady daily rise
2 x 1.5m sells in quick succession....@ 1.45
Come on mms let’s have a tick up
1.55 full ask
GEORGIA UPDATE
Range, an international company with oil and gas projects and oilfield service businesses in Trinidad and Indonesia, provides an update with respect to its interest in the Georgian project.
Range previously advised that it had submitted a Notice of Arbitration against the State of Georgia in respect of the wrongful termination of the production sharing contract over Block VIA dated 29 March 2007 in Georgia (the "PSC"). After careful consideration, Range has withdrawn the Notice of Arbitration on a without prejudice basis.
Nice 1m buy @ 1.50