Member Info for i-man

Tincan this is not News. The article you quote, regarding CryoSpain and the LNG plant and storage tank dates back to April of last year and things have progressed a long way since then. It would be good to get some up to date information on how the plant and tank are progressing now that all the groundwork, foundations, well-head, connecting pipework and fire protection measures are done. There is no sense in bringing completed plant to the site in dibs and drabs. It will all come together on site when the bulk of all the equipment is ready and on schedule for Afriquia Gaz to purchase the LNG for its awaiting customers.

I have asked the team many times and have been reassured that the LNG plant can be relocated at a later date. It would be illogical to have convoys of lorries transporting LNG on a 120km road running parallel to the pipeline once the pipeline is up and running. The plant, that is being built off-site in Spain, Italy and elsewhere, will be skid-mounted and transported to the Tendrara site, where it will be bolted onto the awaiting concrete foundations. It will be possible to unbolt and put back onto skids to transport elsewhere. The deal with Italfluid means that the Sound consortium will own the plant once the lease period is completed. It could be very useful if a peripheral field is found that is big enough to feed the mLNG plant but too small to justify a pipeline connection. This is where the term "micro" begins to make sense for what is otherwise a very major project!

Interesting times!

The major part of the problem with the decaying floating storage vessel FSO Safer off Yemen would appear to be being sorted.

Octavia/Calvalley have made a significant positive contribution to the issue, which no doubt, buys considerable influence in the area. They have deep pockets.

Latest update:

As of 1 August, almost 90,000 cubic meters of cargo have been transferred from the FSO Safer to the Yemen.

SMIT began the transfer of oil on 25 July 2023. The transfer should be completed in less than three weeks.

https://www.imo.org/en/MediaCentre/HotTopics/Pages/FSO-SAFER-oil-spill-risk.aspx

UNDP received funding from private sector individual donations. The HSA Group, the International Association of Oil & Gas Producers, the Trafigura Foundation, and Octavia Energy/Calvalley Petroleum also contributed, illustrating the importance of private sector and civil society engagement on such an operation.

I had misunderstood that additional funding on top of the Attijariwaffa and the Calvalley contributions was still needed to complete Phase 2. The best part of this Q&A session was to learn that Calvalley will cover ALL outstanding costs to bring Phase 2 to completion. Job done!

Considering, that just two years ago, Sound was on the brink of going under, as it was about to default on the $25m bond and has remained on the brink of insolvency, literally penny-pinching to survive, awaiting the revenue that the LNG plant might generate to allow it to start paying off some of its debt, Graham and his very small team has now transformed the company.

It does seem like a massive give away to Calvalley, giving them 53% of our share. We did own 75% of Phase 1 and its potential $35m annual revenue and now will have just 35%, but this Phase 1 concession is tiny, compared to the potential of assured revenues from what will be FULLY funded Phase 1, Phase 2 and the Te4 drill. The future of Sound will now be assured and the revenue potential is huge even if it is just 35%!

We will soon be able to resume exploration activities and any successful find will be relatively close to the infrastructure of the phase 2 pipeline. We still have 75% 0f Sidi and Anoual.

I agree with Southmead and the wait is unnerving, but if anyone needs cheering up, listen again from 4.30 on, where a really positive sounding Graham says "we (already) have our EPC contractor......."

https://vimeo.com/823664714

Thanks jlovie, explanation quite helpful.
"SETSmm is gradually being extended further and further down the liquidity rankings, and now there are many AIM stocks - mostly those with market caps that are, or have been, £100 million or more - traded on the SETSmm system."
This move suggests that it is not only GL who is expecting an upward move in the market cap.
It will open up the restrictions and control our current, just two, market makers have on the SP and the huge spread. In anticipation of much greater market activity in Sound shares?

Thanks PS for your usual, carefully considered contribution, which could even run the risk of being quite up-beat?
The farm-out is certainly more than the icing on the cake. The Attijariwafa proposed funding is only part of, albeit a very large part of Phase 2 funding but not a penny comes back to Sound from Phase 2, until full funding and completion of the pipeline and CPF. The farm-out process is quite different from raising cash by issuing new shares in the whole company with a consequent dilution of the share value (particularly when the SP is so low).
Farm-out is inviting partnership and investment into new projects, which currently may have no actual value to the company, until they are completed, such as the proposed pipeline, the CPF and one, two or three well drills. Farm-out offers a share in these projects, which would otherwise not happen and actually adds value to Sound rather than dilution by issuing further shares in Sound Ltd. I am sure that Graham is taking every step to avoid share dilution. He is working with many different interested parties and I am very hopeful that all the pieces of the jig-saw puzzle are beginning to fall into place!
Funding runs out in July and revenue is not due for another nine months. Surely the Attijariwafa funds will be available to cover the interim?
Rags to riches!

All has gone very quiet regarding Farm-out. It would be good to have any (positive) news in this regard. Is this behind the delay? Where has the "strong interest in the process from a wide range of credible and well-funded parties" gone?
Presumably nothing can be revealed before the financing agreement but hopefully they are still there and committed and able to "fund the expected balance of Phase 2 development costs"

31st October 2022
Farm-Out Update
The Company announced on 9 August 2022 that it had initiated a formal farm-out process for the Tendrara Production Concession and the surrounding Grand Tendrara and Anoual exploration permits. The objective of the area-wide farm-out is to seek a co-investing partner in each licence to both fund the expected balance of Phase 2 development costs to first gas of approximately US$60 million net to the Company's working interest in the Tendrara Production Concession and also to progress an exploration and appraisal drilling programme in the Grand Tendrara and Anoual exploration permit areas.
The Company has received strong interest in the process from a wide range of credible and well-funded parties. Management presentations and data room evaluations are ongoing, and further announcements will be made, as appropriate, in due course.

Tincan.
https://www.soundenergyplc.com/media/f1aez3rk/investor-presentation-spring-edition.pdf

Nothing much new, but you're spot on with page 16. In cautious, Graham Lyon, conservative terms, this shows how much more potential we have beyond what's already agreed in the GSA with ONEE, just in the Te 5 horst. Te 4 is just 5km away and SBK and Anoual M5 are relatively accessible compared to the GME. Hard to understand why pushing at this open door has been such a struggle?
Patience, patience!

Thanks Rubber Soul for posting the Twitter picture.
Shows that this is in no way a Micro but a major project with massive earth-works, concrete foundations and fire-control now all in place. It would be good to have a photo of the whole site, including the LNG storage foundations and the water storage reservoir but even better would be to see the processing plant bolted to those slabs. It would be good to have an update on how the equipment and storage tank construction is progressing off site.
Revenue approaching? Getting quite exciting!

Rosso, I have asked this question a number of times and the replies have always been very rambling and politician like, so there remains a lot of uncertainty. Gary was very hard to hear and to understand. He seemed to be totally avoiding the central question by rambling on about how successful they had been at minimising running costs and how revenue would be coming in from the Badile land sale, but the drift from him and from Graham, is that they are very keen to avoid ANY further share issue and dilution of the assets, even with a farm-in partner. Gary implied that Sound's costs for getting Phase 1 to completion and revenue generation are being met by the Afriquia Gaz loan. Afriquia Gaz's considerable stake in the project is very dependent on Sound's continued existence.
From what I could understand, was that the expectation and hope is that a similar agreement can be reached with Attarijariwaffa Bank's funding of Phase 2. We don't have long to wait now that all Due Diligence issue should have been covered. Their decision will have a massive effect on Sound, either brilliant or disastrous .......so fingers crossed!!

Still no RNS !
Has anyone received information on how to access the Q&A session?
Sarah has promised to send info to registered participants but I'm still waiting in hope.

If no new material disclosures are to be made during the Q&A, we really don't have anything material to discuss. We are waiting on a long list of announcements, most of which are positive and could have a major impact on the SP. I don't think Graham would be pleased to announce if the news was that no Farm-out partner can be found or Attarijarriwaffa has withdrawn its funding offer.
There has to be some RNS soon?

Does anyone know what became of Te-11?
Presumably, if it was considered a potential drillable resource back then, it must still be there? Still a potential resource that hasn't gone away. No one ever mentions it. It can't be the same as M-5 which is in the different Anoual permit ?
Fingers crossed that Graham doesn't give too much away to the farm out partner.

I agree with Southmead, that in the absence an RNS, nothing has changed to prompt this uplift. Graham is working hard to maintain Moroccan financial and political support. The recent RNS was the announcement that Atarijariwaffa bank was delaying its funding decision to March. Remember, that is about this time that the cash required to keep Sound running runs out and a new source of funding is needed until cash starts to come in from mLNG in just over one year. The exploration licences have been extended but even so expire very soon. Everything hinges on finding a farm-in partner and finding financing to keep the company running, hopefully without a further share issue.
Lots of bits of the jig-saw have to fall into place but if and when they do ....we have lift off!

Still living in hope that best wishes will come real.

https://www.assahifa.com/english/morocco/natural-gas-discoveries-in-morocco-will-change-the-rules-of-the-game-sound-energy-ceo-says/

Good luck Graham!

Thanks smithfields for posting this Angus update. With hindsight, a Sound - Angus merger might have made very good sense. Confirms that our GL and team do have their eyes very much on the ball and we are in good hands.

I emailed Graham to ask if there was to be a response to the Q&A session, that those who couldn't join the Zoom session could access. As usual he replied amazingly quickly for such a busy man, but avoided that question, so there may not be any formal response.

He said that the tax issue was the main focus of the Q&A. They were still adamant they were right about the tax but that judges can have different views. Regardless, he says that they have plans in place to ensure the tax doesn't reflect on PLC in the worst case.

IMO, it would be great if they can now forget this tax distraction complete the mLNG delivery and get on with the Farm out and Phase 2 FID.

Does anyone know we can access the Sound Q&A session that was held on Zoom today? It must surely have been recorded.

Interesting to see what is going on at Angus Energy. Perhaps Graham did have the right idea with an Angus-Sound merger? I was not keen. Shows that he has his finger on the pulse and further boosts my confidence in his leadership and the team behind him.

Considering that the 25% tax waiver on ALL the gas production lasts for ten years from first gas from Te5, and then from any subsequent discoveries, this $2.5m tax demand seems trivial and a complete distraction from the real business of achieving FID for phase 2... ASAP, (which does appear to be progressing very well).
It is hard to understand the recent share sell-off and the current rock-bottom SP.