Member Info for ericnat17

“ The 45M Eric is a 100% number, so we only pay our share of this (47.5%).
James

On 15 Jun 2018, at 17:19, Ericcom> wrote:

Hi James

I guess you are busy! But as you are getting the answer to the initial question, I have another on that you may be able to answer.

Concerning the FEED award, the RNS states that the company will be paying an annual fee of no more than $45 million per annum. Is the $45 million the total paided to the consortium or is it just Sound Energy’s share of a larger maximum annual fee (approx. $100 million). I only ask the term “Company” is defined in the RNS as “Sound energy”. If this is the case then $100 million dollar annual fee for the BOOT seems high, maybe we are in the wrong business.

Partridge ask the Company I did.

The cost of the infrastructure is approximately $250M
The fee is $45M a year for 10 years = 450million
Therefore $200million is for the BOOT supplier for putting up the money and profit. Not bad really.

Are you seriously suggesting they should get $650 million for putting up the money and running the pipeline. I will dig out the email. And post it. If you send me you email address I am happy to forward you all of this information.

Naughty partridge.

2 things wrong with that post.
Looks like we are not using the BOOT.
If it is used the $45 million is the maximum for the whole BOOT therefore sounds share is approx $10 million.

Maldini

The carrier portion is for all of the infrastructure.

“ Eric – the carry should (in a mid case) completely cover our capital cost for the development if that is your question. It is however a cap in the case of overspends. Our new interest would be 23.3% so the net US$58.5M means the gross capital estimate is US$251M. So basically going forward if this deal happens we don’t pay any further capex.
James”

After further comms. It appeared to me that the purchaser will not waste money paying interest payments on the BOOT model. It looks like that have deep pockets and are paying upfront for the infrastructure costs.

I said this last week. The purchaser is forking out over $160 million to get Eastern Morocco to first gas.

Email from Sound after the deal was announced

“ Eric. I doubt the new owner will want the BOOT but we have not yet contractually cancelled that yet. The details will all need to be worked out before we sign.
James”

1 share UT

Not seen that before.

I agree crude. It’s just worth noting that we have the choice, dividend or invest.

It is a much better choice than issue of shares or debt.

Jones we have 2C reserves of 377BCF

$30 million a year revenue from the average gas sales for 15+ years. That’s just from the TE5.
We have 3 exploration drills an sidi to come.

No that offer would get refused, it’s a minimum offer.

I think it might happen, but not until the time is right OGIF. Once the metrics of the income from the JV start to look favourable then Sound will be very attractive for OGIF. The funds they represent want a regular income.

Not going private
Not going bust
Not going to dilute
Not going away
Not giving up

Yep

That looks like the plan

Morocco want gas by end of 2021, therefore we are production
We have at least 3 lower risk drills identified in Eastern Morocco. That they want to drill.
We will farm out sidi, 2d seismic then drill.

Not happy with the SP.
But happy with the Q&A.

Exploration with a total of 40+ TCF goip estimate

Production from A 2C (mid case) recoverable, contingent resource for the TE-5 horst of 377 Bcf.

Supportive cornerstone investor
14% of shares held by funds

They can increase over 29.9% with permission of the company

Exactly Ducati.

If the placement of SBK and Is improved then god only knows what it could flow at. The new seismic has redefined this prospect. We now now the gas is in fields that have a relatively high degree of variance over a small area.

There is no way they would be continued to drill unless they believed in the potential. We have all heard the story of they had almost given up on Algeria before they hit. I am more than happy to wait for my dividends.

Missed the live Q&A, but after a quick look can see my questions where answered.

Looks like a Divi may be coming, if you can wait more are on there way. I think we can see the new CEO is not the same as JP. Also MS is happy to leverage his previous relationships in country.

Could the JV be taking on the Debt? I doubt it but why else would it be their decision