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It goes deeper than than this. Just dig a little more about how sound got the tendrara license.

All looks good……….apart from the 2 years bit I thought it was 18 months..

Sound do not have any cash. That is why it is a paper offer.

Hi KTF

Option 2 and 3 don’t make sense to me. So it is option 1. They make the offer for a reason, but at the ratio the reason might be not that good for Us.

The market has had it say. ANGS is over 10% up today and we are hanging on by one MM to the 2p territory.

Hi KTF

You could look it that way. But can anyone on here explain why the ratio is set as such a level?

We have such massive potential. Why would print so many shares (1billion) for a company with a short term route to small revenue. It also has a load of debt and not much in the way of future potential. Why?

Well as the news is out about the offer. They would have to explain it…..maybe that is why they don’t want the call.

A lot would ask the same question why do you value the current and future sound portfolio at such a low level….as indicated by the ratio offered to ANGS….they don’t want to tell us something?

I think we need to fundamentally understand GL thinking here.

I can understand that we may want revenue producing assets.

But I cannot understand why we have the ratio set at such a terrible level. If is a true reflection of the value of our potential then we are a clutching at straws to think Sound is going to be worth anything more than a few pence. I will say it again this looks like Petromaroc. We will dilute with an extra 1 billion shares for a minnow. If we shoot up to 4p before the deal is done all of a sudden we are paying equivalent of 3p a share for ANGS. If the deal goes through before we move up then ANGS shareholders will sell into any rise after that for months to come. Stuffed either way.

We are supposed to be the future of the energy transition in Marco. Not warming a few hundred homes in the northeast of England.

It’s the fixed ratio that is the killer for me…..not very flattering for the Sound potential.
“ The terms of the Possible Offer would comprise the issue of 0.680 Sound Energy ordinary shares for each Angus ordinary share (the "Exchange Ratio") (subject to the reservations set out below). By way of example, the Exchange Ratio represents a value of approximately 1.50 pence per Angus share based on a closing price of 2.20 pence per Sound Energy share on 17 January 2022, being the last business day immediately prior to the date of this announcement.”

This sounds like another sidi moktar all over again. The ratio is fixed so even if sound shoots up ANGS will get the same number of sound shares.

Let say we fly up to 10p. That is going to make the offer very tempting for ANGS and pretty rubbish for us, because the ANGS shareholders will Dump them as soon as they get hold of them just like pertromaroc did. That screwed us for months and months.

History repeating..

At the moment if the deal goes through and whilst ANGS is trading below 1.5 p. You can buy your new diluted sound shares at a significant discount over at ANGS, hmmmm. I think that tells you all you need to know.

This is the number of sound shares that may need to be issued for this deal.
Just shy of 1 billion. We only have 1.6 billion currently. That a lot of dilution for little gain

This is not a what I was expecting. You would think that we would need all our efforts going into Morocco. ANGS are going to take a lot of bandwidth and a lot of equity.

PS my guess is that we will probably have to give a lot up and maybe even operator status to get to phase2. The industry has shot itself in the foot from under investing in o&g reserves and this will need to change during the move to renewable.

GL will need to make the right decision at the right time with the right farm in partner to make it work out. It if he does we could be at 10p before you know it.

Some nice buys. Coming through. Could we hope for a bit more news…..

Just had another L2 tick up now 3 v 1

Looks like a blue day possibly

Some biggish buys and L2 balanced.

We will get on update on phase 2.

You never know we may get news like that released over at ANGS this morning. They are about to get first gas and have now put the for sale sign up. Because of interest in the assets. 30% increase in one morning.

This has the potential to shoot to 3p if we get news on anyone of several fronts

There is the tick up

Some loading up in 400k chunks that is x4 today

Not sure it works like that. They have provided a loan facility for 18 million dollars.

They do have some equity in the company. But it is nowhere near the amount needed to start takeover.

But I would not be surprised if we do start being attractive for takeout considering the maturity of the assets

More movement now 4 v 1