Member Info for ericnat17

Hi Crude

not sure that would look that good. SLB have deep pockets and if they want out of the license with all of their inside knowledge then the asset will appear very distressed

1.6% up

well if you are saying that a potential 9 TCF at sidi is only worth 7 million then the potential 20 tcf at tendrara is only worth 15 million. then that makes the deal worth 1.5p.

Hi Draccan

I am guessing that and buyers would not read a BB to get an idea of the price of the asset. JP is there to do the deal or walk away and drill TE11.

the SP is at approx 10p. if you break it down Sidi Moktar is probaably 4p of that and we have 14 million in cash so that makes Eastern Morocco with 5p or the 50 million that Shell may have already offered.

JP has always said the problem in not selling the asset, the problem is getting the right price.

Hi Ponkey

Yep the Market could be wrong.

and if it is wrong then its a 50/50 chance this it is too high or too low.

SLB are not involved in our sale.

OGIF will get a say. OGIF provide complication, they may well want to stay with the asset in some form. So if there is a deal it is likely to be in paper rather than cash.

if we get an offer of 5p I would want them to drill TE11. Don't forget we have 30% debt ratio. that will get paid first. Then cost associated with the sale, then staff cost and closing down Sound Eastern Morocco and then the shareholders.

Hi Shpunk

I think JP has seen his last Bonus from Sound. We are not getting 30p, 20p or even i fear 15p. The market is very rarely wrong. I would even think it is a bit over inflated with the help of diots like myself topping up, thinking that it will all be OK in the end.

My Guess is we are going to decline any offers and go for TE11, that is the only reason why i can see we have kept BM and JJ on full pay.

BM will be needed as head of exploration
JJ will be needed to rasie the cash.

I have a horrilble thought that they are in talks to rasie cash already and that is why the SP is struggling.

I have followed this up with another email making it clear there is an expectation that wage cuts are needed....guess what no response. A lack of response from JP is pretty unusual...but I guess he is a bit busy dealing with OGIF and ONHYM at the moment.

Posted yesterday but they are in the process of dealing with staff cuts.

Hello Eric.
We are in the process of reviewing staffing (and salaries, including that of Executive Directors) so that is work in progress. The Chairman alluded to that at the AGM today.

For the record I completely get that my pay (and others) look strange now given TE10 and the share price. Some of the 2018 pay decisions were taken back in Q1 2018 so they look strange now. I didn’t get a chance at the AGM to answer that question (as the Rem Com chair did it all) but am open to address it with my Rem Com.

It isn’t so much that we are holding off selling Sidi. The current marketing process is focused on Eastern Morocco that’s true. Sidi was a back up plan for us pre TE6 and one we didn’t need. Whenever I have had USD8M cash “spare” (so to speak) we have always decided to allocate it to Tendrara rather than shoot further seismic on Sidi.
James

I think we are setting ourselves up for disappointment if we talk about a deal that is much more north than we are now. Shell offered JP 50 million for the asset before the TE6 Appraisal well. that now equates to approx. 4.5p. Since then investment in the asset has been approx. 100 million and we still have the same 0.3 TCF. lets be honest if TE8, 9 or 10 had been even a slight success we would be worth 50p plus. But any buyer will be concerned that we have nothing to show for 2 years work since TE7. with some of the best brains in the industry on the job. Lets hope for a high LE buts lets be realistic....Sorry for the Rant,

Bitsas

Just think about that. if we had an offer lined up the SP would not be a at 10p. Unless of course the offer is 10p.

I would like to think more positively and let the asset be sold by Rothchild. My guess is we are the early stages, I agree with another poster maybe the shares should have been suspended. Maybe AIM rules would not have allowed that

Eldwick

If we assume we have not yet got a buyer lined up and from the SP I think we can all assume that. Then this will be the best part of six months before anything appears in your account. There are many stages that need undertaking for a deal of this size. But if you read the RNS there is no guarantee that we will be sold. JP will ony sell the asset if the correct price is reached. its only a guess but i think the cut of point will be 100 million, anything below that i think we will raise more cash and go for FID.

Either way you are looking at a minmum of 6 months and this share will be a day traders wet dream until we get a concrete offer on the table.

Simon has 17,669,000 shares. That gives me 17,669,000 reasons to be cheerful.

This exposure more than doubles the number of shares in BOD.

Before we start bellyaching about his wages, let’s try to understand his motivation for returning. Looks pretty obvious to me.

Thanks Rocket. That's what I wanted to hear. If we get a free pass on the next stage of exploration then eastern morocco may turn out to be a gift that starts and does not stop giving. If JP can hold his nerve and use this position of weakness as a strength (we have nothing to lose), then maybe just maybe I can break even.

if we can keep as much of the 14 million is reserve as possible that would be great.

I am not a corporate account like JP but I can see why he is keeping the company and selling the asset. The asset sale will be delivered by special dividend. Sound energy will remain and carry forward all of the years loss and therefore significantly offset any future tax on profits. That in itself is worth many tens of millions

As I said I emailed JP and as usual he replied within 30 minutes. I asked about the remuneration for the BOD. Response below...

"Hello Eric.
We are in the process of reviewing staffing (and salaries, including that of Executive Directors) so that is work in progress. The Chairman alluded to that at the AGM today.

For the record I completely get that my pay (and others) look strange now given TE10 and the share price. Some of the 2018 pay decisions were taken back in Q1 2018 so they look strange now. I didn’t get a chance at the AGM to answer that question (as the Rem Com chair did it all) but am open to address it with my Rem Com. "

I am more happy with that repsonse.

Yep Shed, not even a nominal pay cut. I have emailed JP and asked him if he would like to elaborate on why we are paying BM and JJ a full wage considering they are basically on garden leave.

If he comes back and tells me they are part of the asset sales team then I may have to start seriously worrying.

Ultimately its only money and luckily for me money that I can afford to right off, which I have.

Hi Longwait

Anyone can sell now at 11p and people are doing. The BOD have got some thing right and somethings wrong. we just need them to get the last part right and get a buyer. The Horst is a great place to start for any buyer. Morocco wil want that gas on line by 2022 and it will run for a minimum of 10 years. that fact on its own will be enough to interest most potentials. I mentioned before that it could be a midcap, but it just as likely to be a country player like the chinese. 300million dollars for them to have close relations with a country like Morocco is peanuts.

that's a bit strong N4A.

Its rubbish I know. I am gutted at my paper loss. considering I was £100k up at one stage. Greed and bitterness in not a great character mix.