Member Info for Fernan10

The analyst´s new target price of 4.6p/sh is much more realistic than previous ones, and adecuately reflects the economics of the non-binding term sheet agreed with the farm-in partner.

I think this substantially lowered TP is the reason for the fall in the share price during the last few days.

Regards

1 barrel of oil has the energy content equivalent to 47,3 kg of hydrogen

https://h2tools.org/hyarc/calculator-tools/energy-equivalency-fuels

Current production cost of green hydrogen is US$ 5-6 per kg.

https://energypost.eu/financing-renewable-hydrogen-globally-ramp-up-to-2030-only-needs-150bn-year/

Then, current cost of green hydrogen is equivalent to a price of aprox US$ 250-300 per barrel of oil.

"Amin Nasser, CEO of Saudi Aramco, previously stated that blue hydrogen costs $250 per barrel of oil equivalent (boe), which suggests that customers in the EU, Japan, or South Korea would not be willing to procure it at such prices"

https://oilprice.com/Alternative-Energy/Fuel-Cells/Is-Green-Hydrogen-Being-Overhyped.html

In times like these, I like to remember what certain sucessfull investor (born in the city of Omaha, USA) always say: "the stock market is a mechanism to transfer money from the impatient to the pacient investor"

Regards

Very informative as always Jimmy.
By the way, with each new elephant oil discovery, your thesis 10 years ago about the potential of Namibia to become a large scale oil province proves more and more accurate.

thanks

Fernan

Hi Jimmy.

I have a few questions about the projected capacity of the onshore facility.

Excerpt rom a recent analyst report:
" the onshore facility that is being sized to handle 105 mmcf/d would be the main bottleneck but it is modular in design and its capacity could be increased quickly."

How long will it take to add 50 mmcfd of liquids processing capacity, after deciding to do that?

Wouldn't it be better to build a 150 mmcfd facility from the beginning?

Regards and thanks in advance Jimmy

Fernan

* "talking about the same issue"

I think we are both taking about the same issue.
Regards

Fernan

OK KTF.
By the way, I sent this email this morning to Investor Relations:
______________________________
Dear Sarah:

continuing with my previous emails, Gary said, en relation to the funding of G&A expenses for the current year, that the company is trying to monetize some receivables.

I noticed that Sound had Other receivables accounted for in the balance sheet for June 30th, 2022, for a total amount of £ 2.345.000

No additional detail was provided about this account.

Would you please provide some colour about these accounts receivable?

Thanks in advance
____________________________

Hi KTF.

I suspect the amount possibly due by ONHYM is related to their required contribution to fund Tendrara phase 1 development costs.

Regards
Fernan

Hi keeptofacts, thanks for the repply.
Not looking at the screen during the weekends is a healthy practice, I should follow that.
I checked the press releases. We still have Euros 350.000 to receive from the Badile land sale. As you have said, a small amount.
I can't understand what we have to receive from OMHYM. The partial sale of the Tendrara acreage announced on Nov 2019 finally didn't materialize, because the potential buyer didn't have the required funds. Apart from that, that was a proposed sale of Sound's interest in the license, without any imvolvement of ONHYM. Why are they owing us any money now from that failed transaction?

Regards

Fernan

Keep to Facts:
If you don´t mind, could you please elaborate on these 2 options to get some cash before first gas (amounts due by third parties, etc)?

Thanks in advance

Fernan

Thanks.
They need to improve the quality of the sound.
I´m writing the company complaining about that.
Regards

If the parent company is not legally obliged to satisfy SEMS´ tax liability, the only tax claim outstanding is that of Sound Energy Morocco East Ltd ("SEME"), currently under appeal, for an amount of US$ 2.55 million . See press release on July 13th, 2.022

Regards

Fernan

I asked the following question on the Q&A sesión yesterday (at 17.15), about the tax liability of the dormant subsidiary:

Question: Should Sound lose the tax case in court, is there any obligation on the Moroccan law for Sound Energy PLC to satisfy the tax payments due by the dormant affiliate?

Graham Lion: "Yeah, well, So Fernando is spots on on these questions….Sound Energy Morocco SARL.... is a Moroccan company, a standalone Moroccan company and there is no consolidation rule in Morocco for that company. So our understanding and our legal opinion understanding is that that´s correct. There is no obligation to any other Sound Energy company. If we lose the case, we don´t believe we will lose the case. But if you lost the case."

According to the news released on Sept 14th, 2022, the tax claim against the dormant subsidiary Sound Energy Morocco SARL AU ("SEMS") amounts to US$ 19.7 million.

It seem likely that, even if we lose the case, the tax authority could only pursue the assets (if there is any) of the "dormant" subsidiary, without any effect on the rest of the companies within the group, including Sound Energy PLC

Regards

Fernan

Natural gas demand: 120 mmcfd
Future supply:
Sound Energy (phase 1). From 2024: 10 mmcfd
Sound energy (phase 2): from 2025: 33 mcfd
Chariot (from 2025/26): 60 mmcfd
SDX: 5 mmcfd produced in 2022, and growing
Total supply already commited for internal consumption: 108 mmcfd
Since Morocco's gas demand will be substantially taken care of by these developments, excess gass will be freed to be exported to Spain.
After having internal demand attended, the economics of future gas discoveries could be calculated taken into account european gas prices.

Regards

Fernan

After having internal demand substantially attended, the economics of future gas discoveries could be calculated taken into account european gas prices.

Regards

Fernan

Natural gas demand: 120 mmcfd
Future supply:
Sound Energy (phase 1). From 2024: 10 mmcfd
Sound energy (phase 2): from 2025: 33 mcfd
Chariot (from 2025/26): 60 mmcfd
SDX: 5 mmcfd produced in 2022, and growing
Total supply already commited for internal consumption: 108 mmcfd
Since Morocco's gas demand is substantially taken care of by these developments, excess gass will be freed to be exported to Spain.
Regards

https://www.iea.org/reports/global-hydrogen-review-2022/executive-summary

https://www.fitchratings.com/research/sovereigns/fitch-affirms-morocco-at-bb-outlook-stable-04-11-2022

Unless Graham pulls a rabbit out of the hat, I expect a share issue of c. 250 million shares in the coming weeks, as follows:
Cash flow déficit for 2023:
G&A expenses (Apr-Dec): US$ 3.25 million
Bond redemption in Dec23 (5% of the outstanding debt): US$ 1.25 million
Interest payment in cash in 2023 (2% per annum): US$ 0,5 million
Total cash flow déficit in 2023: US$ 5 million
Share issue price: US$ 0,02/sh (c. 10% discount on current price)
Total shares to be issued: 250 million
This calc doesn't take into account the eventual obligation to pay US$ 2,55 million of tax already judged by the morocan court, and subject to appeal. In some jurisdictions, the payment of the tax is a condition to appeal.

Regards

Fernan