Member Info for Gassy

Exploration - if we did have gas shows, how would the gas be managed during drilling? It would come up through the circulation; would it be flared?

Sailplane - my take is that the £1.5/tcf number reflects recoverable reserves. So if we get certified reserves of say 2tcf after our drilling campaign that would be worth £3 per share in a LE. Discoveries also derisk leads and prospects identified by the seismic. Clearly these prospective reserves would be heavily discounted and I remember 10% being quoted. So let’s say the discoveries derisk another 20tcf, that would add another 20 * 10% * recovery factor (your 50%) = 1tcf, or another £1.5 to the share price.

Using these numbers, sound could be valued as follows:
Current situation - 0.5 tcf * 0.9 + 31 tcf * 1% (no CPR) = 0.75 tcf. If we would be in play, I assume we get £1/tcf for our shares or 75p SP at exit.
Post drilling say we prove up another 1.5tcf and find good correlation with seismic which uplifts the seismic to 10% so we’ look at a value of - 2 tcf * 0.9 + 31 tcf * 10% = 4.9 tcf or £4.9 per share at £1/tcf

Thanks Bronxville - lots hanging on AP101 approval then!

I am a bit puzzled that the value of the voucher would be about 2x the market cap of the company and yet, the share price has not responded. Analysts suggest that the current value is fully underpinned by Loyuxta and that the pipeline is worth some additional 40p. What is it that makes the share price not budge - solvency concerns?

UTVF - are you serious? 7x current share price? With no risk? I am heavily invested as I think we are undervalued but this discussion needs grounding in reality.

Great news about the 20inch pipeline. Is it big enough? 240 mmscfd is about 90bcf per year - 1 tcf would fill this pipeline for 11 years.

Thanks Trek - I am not holding much hope but was curious about the link with Sound Energy�s potential success. Many mouths to feed before trickling down to unit trust holders

As part of my legacy holding in Amryt, I also hold Fastnet trust units. Does anyone know how does relate to Sound Energy�s activities - does the trust hold any Tendrara option or royalty rights?