Member Info for ericnat17

Partridge

Read the RNS again.

The 9% will not all be cash . Approx 50% will be held back for carry for costs.

“ further 9% of Sound Energy's remaining interest in Eastern Morocco Portfolio on the same proportional financial consideration and carry terms”

I thought everybody understood that, and that is one of the reasons this 9 % part of the deal is so bad.

I think that most LTH understand that we made our on choices about buying and holding.

But this deal is not our choice. I have not seen any post that strongly supports this deal. Explorations calcs demonstrates how bad it really is. If I am still a holder I will vote against.

I think we could have used the BOOT to cover the infrastructure costs. JP has confirmed to me that he has not yet cancelled the BOOT with ENIGAS. So it is still on the cards that we can use that mechanism to fund the pipeline and CPF. All wee need is funding for the horizontal wells. Then we keep control of our license.......it feels that we have a very stark choice.

Thanks exploration

So We do not know how much OGIF paid for their original percentage. But it was to help out a company with its back to the wall. Sounds a little familiar.

Of course, sorry my mind is elsewhere.
Yes I see that from the media interviews that JM has undertaken recently

Thanks for the reply

Trellis good Email but. But not a very good response.

You can now see why I am concerned that eve though the deal is less than perfect, it is by far in away not a definitive that it is going to get over the line. JP is already preparing us for that eventuality.

Thanks you exploration for your answer, FromHere has asked a good question. How did OGIF gain their original exposure. Can’t believe it was a “debt swap”

I do not think we can just sell it, ONHYM would have to OK it and with work commitments left undone. It would not be a good message to send out to other license holders.....Just sit on the asset and if you can not undertake the work... it is OK to just sell it. No they must have a plan for it, God knows what!

But with a CFO and I doubt we are going to replace JJ then the options are looking limited. JJ would have been instrumental in any Farm in.

Hi Jez
I understand your logic but how much did we pay for SIdi? I think it was approx. 60 million shares and PetroMaroc sold most of them at over 50p per share. That £30 million pounds and now we may just relinquish the license.

Also we are on the hook for profit sharing with PertoMaroc, I think they may have some sort of recourse if we relinquish the license. There is usually some form of protection for the seller with regards to those sort of arrangements. So IMO I think we will fund the seismic and raise capital to drill. The trees are one problem but the PLUG and PLAY aspect is gone due to the sulphur.

Woodrow

I have asked the question no real response. I have also told JP that the JV needs to be listed (for many different reasons). He has insisted that he does not see any of these benefits and therefore the JV will be held in private hands

Does anybody know how OGIF originally entered the License?

I expect Exploration will have the info somewhere.....

Hi Trellis
I had not even considered OGIF not voting for this deal. But I suppose that could happen and that it just another hurdle to add to the few that are already there before we even get to this deal. The deal that has been roundly lambasted on the BB.

GSA
FID
Due Diligence
JV Financing
Deal Vote
Morocco Government Approval of JV as license holder.

And now lets not forget Sidi, to maintain the license we need to have undertaken and processed 500km of 2d seismic by October 2020.(thanks exploration), do we have enough management bandwidth? A farm deal would needed to have been announced already if any new partner was going to undertake the seismic, imo. So guess what we are going to have to pay for the seismic (approx. £15million) or lose the license. We are not going to lose the license, therefore we are not going to pay the debt of or get a nominal dividend.

As you can see I am pretty pessimistic about the future of sound. The Geology has not been our friend.

As far as I am aware SLB and ONHYM are not part of the JV.

OGIF are part of the JV. But others posters on this board have pointed out that they could be the money behind the private company. Therefore it would be very beneficial for them to get hold of sounds percentage on the cheap. They are moving from being the silent partner to the Operator of the license and also will have a mechanism in diluting the Sound shareholder into nothing. Of course this is all conjecture and when we see who the private company is then it will all become clear. The problem is what will the SP be like in Feb? We may be so low that it will really make no sense to sell.

So being very cynical JP could have stated that we where moving into a period of exclusivity and left out the details of the deal, but no just enough details of the deal have been given out to cause concern.

I will sell my holding on any sort of bounce.

Once the license moves in to private hands of the JV, we lose control, End of.

The 14% for me is of great concern. it may be indicative of the plans for the future of the share in the license for Sound.

Lets say the new owner wants to go on a major drilling campaign before they finish the infrastructure, great you say. Well how are they going to fund that campaign. If they raised against the reserves then we could be diluted again. We would not see where this additional capital comes from and we would not even know if the amount of cash provided would be appropriate for the share of the license that we give away. I am not saying this is going to happen, but stranger things have happened.

Hi Wood

I have had several email with JP about the JV and it appears that it will not be listed and therefore a private limited company.
THE JV will own the 47% of the License.
Sound will have a share of this company. This percentage of this share will alter if we drop to 14% of the whole license.
If the JV decides to raise capital then the Percentage may drop even further. I can not see how we will have control over the JV and its ability raise funds against the Horst reserves. We also have far less scrutiny if the company is not listed.

I should say that the nuts and bolts of the deal have not been finalised. And I would imagine that we have some protections

Hi Joe
Yes it does seem as though we are building up a diverse portfolio. In a recent interview they state that we are producing assets, is that correct? I cannot see that anywhere.

As I have said today on the Sound Board, there are several steps before we get to that point. My concern is that we have GSA, FID, Due Diligence and Financing to get through. including all of the issue with infrastructure. So if I felt very confident about all of those things then I may stick it out for my dividend and Sidi Mokhtar activity. At the moment if we get a spike up I will sell.
What about you will you keep your investment in Sound?

Bob
I had to look acolytes up. The last time a gave a hand to a priest I ended up in a sticky situation, so yes I suppose we can draw some comparisons.

Hello All

I am considering dumping my Sound holding on any sort bounce, if that is the best deal JP can get then it will be along road back to any profit. I have a relatively small amount in here and think it looks oversold at the moment.

The only that I am concerned about is the risk of further dilution. I have looked through the results and Website and cannot see any production assets. To me that says dilution. Looks like the FTSE100 for my now small pile

Hi Part

If you email JP he will respond. prior to this week i have emailed JP about 5-6 times and he has always responded.

This week alone I have emailed him 5 times and he has responded to every one. I would also be very interested to know how much cash we have in the bank, it should be plenty considering we where funded for TE11 and we did not drill it. We wont be running low....

Not sure, but i know JP was aiming to get to 3.1 million the latest figure i can see is 2,602,905, which at the moment is about £110k worth of shares.