Stephan Bernstein, CEO of GreenRoc, details the PFS results for the new graphite processing plant. Watch the video here.
Thank you to all posters that attended the event in London today.
Genuine questions:
If Te9 comes in with gas evident at both depths....
Does anybody think we'll still be here this time next year ?
And..
If, as stated today, Shell and Repsol are eighteen months behind us in terms of evaluating their 9990km2 acreage in Eastern Morocco, is it likely that they'd bid billions for Sound when they potentially have their own Paleazoic areas to go after ?
Lelo.
Thanks for posting.
I was aware of the outline of the pipeline plans but this article adds real colour to the story.
At a different level to PI interest, there's clearly significant interest in this next well, from a lot of high level people in Algeria, Spain as well as Morocco..
C'mon Sound.
MK.
Your last paragraph is a view shared by many I imagine. Personal and private business though I understand how 250 won't change his view.
Separately,
On the Q3 presentation:
https://www.soundenergyplc.com/media/1571/se-ip-q3-sep10.pdf
Slide 5.
Does anybody know what happened to Te2 well results ?
In simplistic terms, it looks like whoever drilled this well were unlucky.
Te1, 3 and 4 probably wouldn't be drilled again in those locations given what the seismic picture now indicates.
Perhaps Te2 just needed well stimulation...
Anybody cast an insight into this...
Just bought more at 38.02p.
For a moment the price was 37.6p. Slowly managing to lower my average.,
Don't get the point of a Bugatti tweet.
I thought we'd stopped this sort of amateurish behaviour.
If the tweet had occurred to celebrate a significant gas find at Te9, I'd understand but would still consider it to be amateurish.
But definitely not this sort of thing at this stage.
I still remember the end of the rainbow, ending at the drill floor in Badile !!
The C4 business is of no relevance to me (at this stage). I do however, understand how this adds more frustration or angst to the lack of progress with Te9.
We revealed the Te9 location a long time ago now.
The confidence on the chosen lo cation from BM was reassuring.
The whole mantra of our company is to explore and prove up more gas.
It does increasingly appear that we're in no rush to get the drill bit into the sand.
The clear and obvious delays surely can't be attributed to the pace of logistics and transport.
So is there a strategic delay occurring and if so why ?
I guess that many on here would like to believe that there's a deal in the making. There's probably many other potential reasons.
At this rate, the PI's going out to Morocco in October have zero chance of seeing anything other than moving machinery which is fine if you don't already work in this industry, but for those that do, thats a pretty damned boring exercise.
I struggle to comprehend that the Te9 plan can slip unwittingly to this extent. Yes, delays in projects occur but rarely at the logistical stage when all the procurement is already in place.
So why aren't we there yet ?
250SWB.
Competence levels vary immensely in the O&G sector.
For many years, ExonMobil and Total were renowned in the industry for enticing the best talent from the best universities in this country and beyond, including Oxford, Cambridge, The Imperial College and Harvard. This approach paid dividends with lesser companies relying on purchasing proven acreage rather than exploring in the truest sense of the word. The best companies literally did entice and poach the best talent. They paid out for talent to reduce paying out for proven acreage.
Nowadays, technology has levelled the playing field somewhat. Read on to understand why I open with these thoughts.
A well-run independent oil and gas exploration company has to manage the balance of their teams perfectly. This ensures that the right input goes into decision making in terms of exploration technology and then the drilling strategy,
I invested in Sound because of four reasons.
1) The potential of the asset (and the obvious size),
2) The team that JP has compiled with specialised technical disciplines including geophysicists, geologists and of course finance backgrounds. All of these workers have their own bias. None appear to be reservoir engineers or drillers. 3) Thats where Schlumberger add to the portfolio.
4) Importantly and last but not least, because technology has changed significantly and the gas that was in Morocco in the 60's and 70's but couldn't be extracted in commercial qualities, can now be extracted with the right team using the right techniques.
All very healthy in my view. A first class asset and a very good team with the know how and todays technology at hand..
Being able to successfully mesh together the technical information against our financial risk is the subtle but important trait required from JP.
We don’t have the wide variety of cash flows enjoyed by large oil and gas producing majors, and we can't sustain our current expenditure forever. Thus, I do think that we've entered the last year, perhaps nine months of Sound Energy's existence.
I do believe that we'll drill Te9 and I have a good feeling that we'll nail both zones.
I don't think the SP will react as we'd like though and I conservatively feel we'll range between 70 and 80p on good well test results.
Only an offer will take us to an exciting and exiting level.
Wouldn't want my cash invested anywhere else.
GLA
Yesterdays RNS relating to a "new large" Palaeozoic structure was welcome news indeed.
However, when we look at our potential numbers, my understanding is that the previously quoted 31TCF high case potential already had some area's of Palaeozoic factored in.
Could one of the more informed posters verify this ?
Jag. A very good insightful post. My take on your inference is that the seismic is being completed in entirety for one of two reasons: To simply reduce the risk to Sound at the bequest of Sound and our other stakeholders (something we haven’t undertaken on this level before). Or, at the bequest of a suitor (or multiples) who likely won’t bid on completion of even another successful well, unless there’s a strong correlation between that said well and the seismic picture for other areas. We all wait on Te9 and I get that. But. I’d like to hear BM state how many areas of seismic are looking similar to the Te6 or Te7 areas - though he has stated how many areas look similar to the chosen Te9 location. I can’t recall this information on Te6 and 7 similar structures being offered.
For some time now, there's been a few missing pieces of information.
One being the Gas Sales Agreement which will underpin our current position.
The second (in my view) being the seismic results.
The recent Mitchener and Malcy interview was probably as good as it could have been.
How I wish we could see the seismic though, with a laymans explanation of how good this is going to be/or could be.
But this is missing so we look for indicators elsewhere.
Today's RNS suggests to me that SLB want to get firmly and squarely into bed with us.
Not sleeping on the camp bed at the side.
Even if they only have a third of the bed. They want to be under the duvet and snuggled up to our shoulder...
They'd only do this if they saw the promise that we're all hoping for.
An agreed FEED for a 20" Pipeline.
An absolute desire to make this work by the Kingdom of Morocco/government.
Now SLB are saying "C'mon Sound, give us our slice. We've played ball with you. You need to play ball with us".
They'd only do this if things were looking good.
Somebody once said on this board "what if the seismic indicates that there's no gas".
I think today's RNS is a strong indication that this is not the case.
A steal at todays prices :)
When the SP drops again today, just take it as a reminder of the games that MMs can and do play.
Recent news of a 20" Pipeline and Gas processing plant.
Sidi Farm in.
Now a further confirmed Eastern country basin model with oil added to the mix.
How this share flounders in the low 40's is beyond me.
Can only be those damned MMs.
Can't wait till the big LE RNS drops one day.
Only point I'd add that concerns me:
JP - are we going to drill a hole in the ground at some point soon ?
PNE.
From a value perspective it would appear that you call this right and that we should take on the risk of further drilling.
But a discussion I had around a year ago with one of my company's directors (Geologist background) formed this opinion and an alignment that I've always hung to.
Not too many years ago, the USA had fourteen major NGL import facilities, such was its reliance on oil and gas imports. The success of shale fraccing changed all this and most of these terminals have been adapted to allow the US to export rather than import. They can now turn on the taps at will.
He went on to explain that if oil and gas can be extracted from US shale, it can be extracted from anywhere in the world, such is the tightness of formations that they deal with at Eagleford and Bakken basins.
Morocco has tried since the 60's and 70's to produce from difficult formations with little success, then along comes Sound and Schlumberger and bingo, similar techniques applied to Te 6 & 7 as they use in the US and we have commercial flow rates.
So the seismic we're undertaking outlines the picture and the big boys will KNOW they can get it out whereas ten years ago the gamble for any O&G company was enormous.
We don't know the sale price but we do know it will be several billions of USD. This suggests to me that the data is indeed being reviewed currently and there are suitors out there that want this purchase.
Its all about when and at what price.
I have this sneaky feeling that we won't drill Te9. We'll receive a sale price followed by contingent payments over the next three to five years based on the amount of gas that the buyer uncovers - up to a TCF limit.
Personally, I'd take that.
Under those sort of terms, we could easily be better served in the long run, selling early on seismic and then watching a big player uncover more payments to the old Sound Energy shareholders as the years pass by.
Or perhaps just wishful thinking..