Member Info for JezTheFez

Levelup,

Whether there is a deal or not, my attention has been focused on a sentence that was contained in the most recent RNS, which is as follows:

"Mr. Seghiri holds 1.5 million options to subscribe for new ordinary shares in the Company at a price of 70 pence per new ordinary share, with a vesting date of 18 January 2020 and an expiry date on 18 January 2022."

When you take into consideration how many shares there are in circulation and obviously the current share price, then doesn't this surely point towards an imminent share price consolidation and possibly an equity raise to go along with this at the same time?

Taken from the 18th December RNS:

"Following the issue of the new Ordinary Shares in respect of the Placing and in lieu of fees, the Company's issued share capital will consist of 1,156,037,264 Ordinary Shares. Each share has one voting right and no shares are held in treasury. These figures may be used by shareholders in the Company as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Financial Conduct Authority's Disclosure Guidance and Transparency Rules."

Now...to get the current share price up to around the 70p mark, the price would need to increase by circa 35 times. Does this then point towards a potential share price consolidation of say 40:1 or even 50:1? I say this because usually when there are share price consolidations, the people benefitting from them, usually from their outset, tend to be at a price where they are at least at the same level as the new consolidated share price.

Sure, should there be a deal and there is a gas discovery, then it is fair to say the share price could rise from say it's newly consolidated level at circa 70p up to over £1 by say 2022. Hence 2022, which may mean that there may not be a huge amount of drilling taking place this year if at all and instead drill results could be not until 2021 at the earliest.

So, what do I think? I think right now there are too many shares in circulation and they will want to reduce the number of shares on the register via a share price consolidation exercise of say 40:1 or even 50:1. Secondly, money could be raised soon after / at the same time as the share price consolidation for running / operational costs. Why not? If the number of shares is being consolidated down, then issuing another block of them at a slightly future date won't be too catastrophic.

The money that SOU will get from any deal, assuming there is one will probably mostly go towards paying MF i.e. the debt owing to him. At which point, he will step aside as 'Acting Chairman' and take more of a backseat position. The debt is currently against Sidi, but I can still see the money from any deal going straight to Marco. I therefore don't believe there will be any special dividend for shareholders.

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Another option I missed out is a potential reverse takeover of SOU.

I did go. Albeit for a day. I didn't realise you were keeping tabs on my whereabouts. You should be dissecting the RNS as I have done and discussing it, as I am doing. The evidence is all there for people to see. Just open your eyes.

Mancave,
I think it could be down to whoever buys the share of the Eastern Moroccan assets, could well be running the show and therefore, having a full time Chairman and CEO at SOU may be overkill. It may also mean that the whole of the company is being sold-off, lock, stock and barrel. To whom? Maybe the Moroccans. OGIF, the Government etc. BM is also going, which could mean that there will be no further drilling or exploration. JJ is also leaving, so no CFO either. Sarah Dees has ECHO and CORO to keep her busy and she has already done well out of SOU I reckon. I still think MF needs to put his hand in the air and admit that SOU isn't one of his greatest investments. Unfortunately, on the face of it, it hasn't paid off. Not for him, nor the vast majority of II's and PI's. The SOU BOD are the only ones that have done well with the high wages and bonuses. I'm not sure what to think about BM taking his pay-off in the form of shares. May be down to SOU not having enough cash in the coffers to pay him so taking any form of payment was better than none at all.

Actually, on reading those three paragraphs again, it appears that Mr. Seghiri is just the 'acting CEO' and NOT the actual CEO. That role is still being looked at. All that has happened is Parsons has relinquished his executive duties and has stepped down from the Board.

…"the Company continues its process to identify and appoint a Chairman and further announcements in respect of the roles of Chairman and Chief Executive...…"

Spot on, Trellis.

In fact, the latest RNS is full of contradictions. Please see the below paragraphs, taken directly from the recent RNS:

"Sound Energy, the Moroccan focused upstream gas company, is pleased to announce, further to the Company's announcement of 12 November 2019, the appointment of Mohammed Seghiri as acting Chief Executive and as a director of the Company with immediate effect."

"In addition, as announced on 12 November 2019, the Company continues its process to identify and appoint a Chairman and further announcements in respect of the roles of Chairman and Chief Executive, which are currently performed on an acting basis, will be made, as appropriate, in due course."

"As a result of Mr. Seghiri's appointment, and as announced on 12 November 2019, James Parsons will relinquish his executive duties and step down from the Board with immediate effect. To ensure an orderly handover, Mr. Parsons will remain available to the Company, in a consultancy role, until 12 May 2020."

Surely, the first two paragraphs contradict the content of the final paragraph? Or at least, that is how I have interpreted it.
One minute, Seghiri is 'acting' and then, as if by magic, right at the end of the RNS, he transforms into the actual CEO. The man has literally gone through an utopian transformation. It's incredible what powers lurk inside a RNS.

I think the guys at SOU have got themselves all in a muddle. They can't make up their minds if they are coming or going. Parsons is hanging around in some sort of "available" capacity until May 12th, 2020 and quite frankly needs to leave the scene altogether. He has lost face completely with PI's (not according to Herr Krudenhoffe) and it's actually very bad taste that he is hanging around taking the last bites of flesh off the carcass before he heads-off for his summer hols. It lacks eloquence, but you can't teach eloquence these days to some people. And why May 12th? It seems a very specific date and I'm sure there is a reason for it that probably involves money. Shouldn't he be selling car batteries down the market by now and not faffing around in search of gas? Have a fart if you want to smell gas. Go and eat an egg sandwich or something like that, but don't hang around getting paid stupid money for not delivering on a promise of a LE. It's messed up loads of people's plans and lives and we will NEVER forget. Never....

JTF

The irony is, they have raised this money at PI's expense and they'll still have a duster later this year. Some companies just don't have any luck whatsoever. I'll be back later this year to remind you.

Following the issue of the New Ordinary Shares, the Company will have 7,109,635,562 ordinary shares in issue, all of which have voting rights. The figure of 7,109,635,562 ordinary shares may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or change their interest in, the Company.

This could lead to share consolidation at some point in the future IMO. That's a lot of share out there now. Glad I got out of this dog of a share a couple of years ago. DW is not to be trusted.

I'm going now. I'll leave you all to it. Don't say you haven't been warned though. The writing is already on the wall here IMHO.

BravoSix,
The best time to pounce on SOU's assets is when SOU runs out of money. There are probably a number of so and so's watching the animal getting weaker and weaker and are beginning to circle like vultures. I can smell blood a mile off and this one stenches of the stuff. Why buy for an inflated price when you can grab the asset(s) on the cheap when SOU runs out of options and money. People will do some very odd things when they are desperate. What is happening here is pure theatre. I'm intrigued to see how it all plays-out. Time to grab the popcorn.

Ducati,
Lovely day for a bike ride, pal.
That's a hint. In other words.....on yer bike!

Jezza

Levelup,
I've already got a job, but thanks for asking. I'm entitled to my views just as you are. It's a free bb, so embrace all of the comments because you may learn something new. For example, how to deep fry a spam fritter.
If the Moroccan's are so hungry for SOU's assets, then why didn't they secure them during the fabled LE? Over 20 companies went through the data room and if the Moroccan Government / King wanted a slice of what we have, then the opportunity has already presented itself to them. Guess what? They didn't secure it and maybe that's because they aren't all that interested in acquiring dust. There are other gas producing companies in Morocco anyway e.g. SDX Energy, Shell and Repsol. We couldn't even get a deal, which would have returned 15pps, which was what I was at least banking on happening with my 14p average share price. You will recall I did one last, cheeky top-up to get my average down below 15p, which was purposeful in an attempt to recoup my money. My simple, window licking, call-centre dwelling brother, STZ, had a 9p average and we both thought there would be a very strong chance that he'd do well from his investment. As it turned out, the pair of us divvies were wrong. Ah well, God loves a trier.

A company can still delist though should it run out of money, which is what I am proposing will happen here. I just think there is too much money owing and the financial position is questionable too. NOMAD's can also suddenly jump ship, as was the case over at MYSQ before it wrapped-up.

Trellis,

I'm not sure whether to be happy for you or upset that Wannabe 5 aka Vanessa is in the process of packing-up her knives and scissors. Hey, at least your manhood will survive 2020 if nothing else!

I know to some I can be a thorn in the side on this bb. However, to others, they love my wit and can see that I am only having a bit of fun. If I didn't type loads of messages then my writing skills would suffer and I'd end-up like Destroyer who learnt the alphabet via a tin of spaghetti.

Yes, of course you remain as 'Chief Alcohol Officer' at Chuckle Energy plc. I just wish you'd share some of your booze wit us and throw a party (perhaps when Wannabe 5 has vacated the building?) Alternatively, we could arrange a soiree somewhere in London for anybody who wants to meet-up for drinks? Just a thought...

JTF

Chong is working for a Singaporean company. I think Eric is in The Seychelles. The authorities need to catch up with the pair of them. There are plenty of questions that have been left unanswered. I want my money back too.

Lyndon - would it surprise you to hear that I am a very good Elvis impersonator. If I entered an Elvis singing competition, I would probably win a prize. You see....the point is, I am full of hidden talents. I am a good opera singer too and have a degree in Music. I am Grade 8 piano too. The list is endless. You lot think I'm some sort of spam frying dumbo who spouts utter nonsense. Jez only has one 'z' and not two. Destroyer's grammar is still rubbish. You lot need to take up a hobby. Go to the gym like I do every day, read a book, learn a musical instrument, but don't bother me cos I ain't interested.

Utilitiesman has a secret crush on me. He's just playing very hard to get. Stop toying with me, Utilities. Haven't you got a water or electricity bill to pay? Do something useful with your time.

Thanks for your kind words, Partridge. It's nice to know that somebody out there cares about me and what I have to say. I'm just a fat dude with an opinion that could be right or it could be wrong. The point is, nobody knows what is going to happen here until news lands. It's in the lap of the Gas Gods, which is kind of ironic because SOU doesn't know what gas smells like as of late. The smell of cheeky flatulence in the workplace don't count!

Get lost, Utilitiesman. Believe what you want to believe on this bb. I am the voice of truth and reason and you need people like me to guide you into making the right decisions. I can't wait to tell you all a big, giant, told ya so when all of the warts reveal themselves. You only want to believe what makes you smile and comfortable. Investing in SOU is not a warm, fuzzy comfort blanket, pal. Wake up and start smelling the coffee. Twelve posts and counting....

Good to see that Mert is still earning his spam at Chuckle Energy plc. The last dedicated member of the team!