Member Info for Kasjnaton

Point number 1, the TE-5 horst is not the only location within the Tendrara licence area that Sound hold where gas can be extracted in commercial quantities.
Point number 2, a number of people invested on the £1.50 per TCF of extractable gas valuation, as misleadingly provided by the CEO, and the value that gave to the TE-5 horst.
Point number 3, sufficient funds were raised to stop Sound becoming vulnerable during the negotiations, and more funding was available. I would like to know why there was a halt called on drilling TE-11. The official line on this is that it would put the company in a difficult financial position.
Point number 4, many posters on here asked them to reconsider the drilling location of TE-10 when TE-9 was a complete and utter failure.
Anyone who thinks that the deal that is being put before us is of benefit to the PI's needs to have their heads examined.

Medi, I shall at least thank you for stating that you do not know about the effects that the environment can and does have upon both plant and animal life, as this is more than a few other posters have admitted to whilst completely rubbishing this proven and well known fact.

The only thing I ask about this is why be so closed minded about it? Why not at least do some research into it to find out more about it before rubbishing it?

As for the share price I have already stated my views and I believe that £3+ is still achievable with a few wells drilled which discover commercial gas but this will obviously take some time to carry out.

As for how to get the share price to that valuation there are several routes included bringing TE-5 horst into production as a first step to obtain a revenue for the company, or more conservative drilling to prove up the horst and re-entering of old wells to drilling in completely new areas that have been identified by the seismic that has been carried out.

Each route though would have to be looked at on its own merits.

Medi thanks for the reply but your post does not mention anywhere my request to talk about the technology and perhaps why and how it works, instead you ask why don't I contact Shell/Repsol and try to sell the company for £1+ so I shall digress and give you my response below;

Arrange an EGM then and put my name forward to run the company, after all even Exploration stated the following:

"So why is it discounted? Seems to me the discount is mostly due to lack of confidence in the current management and technical team. To be frank, a couple of ‘junior manager’ types with big company experience could run this project with their eyes shut. It’s not rocket science"

I would also be prepared to take a salary lower than JP's, say £200 k (negotiable) along with share options, thus already helping out all shareholders in helping to preserve the cash balance.

Last point then I shall make as no one seems to even be bothered to comment on the document that I linked;

The environment in which something lives obviously has an impact upon it. Gardeners will tell you that certain plants grow better in certain soil types and do better either in the shade or they need plenty of sunlight in order to thrive.

If a plant is not grown in optimum conditions, perhaps too little or too much water then that plant is being stressed. It may survive depending on how badly stressed it is and how stressful those conditions are but it will have different physical characteristics to a plant that is growing in ideal/optimum conditions.

Altitude is another example of stress that can be quite readily seen in humans; you want to climb to the top of Everest you need to take oxygen with you.

So is not feasible to see that changing the chemical composition of the atmosphere in which a plant grows by increasing the concentration of hydrocarbon in its vicinity, and thereby reducing the concentration of moisture as well as CO2 and other gases, will put that plant under stress, causing some physiological changes to it, for instance smaller surface area of the leaves, changes in the type of chlorophyll present in the leaves. When, of course compared to a plant growing in opitmum conditions.
Is it therefore not possible to see and measure these differences?

I do not doubt in the slightest that there is a lot more to go for, please read my ealier post...

Still no one able to or prepared to comment on the Entrada data, to rubbish it, to put it down, or to at the very least acknowledge it?

By the way I think that the whole document is an intersting read.

I was only referring to what the market sees currently as there is no trust or faith in the BoD, therefore my feeling is that massive dilution is seen by the market, therefore the share price only benig 8p.

Yes another 4 exploratory drills could be funded based on the current data, would you want that?

If I am/were 250/GRH do you not think that I would be in breach of the LSE tersm and conditions and therefore no longer able to post?

You say no one is interested in using Scotforth technology, so how do you explain away the PDF that I linked to with repsect to Entrada Energy, the information as specified on page 11 that went to a court in Utah spells out Scotforth.

Surely misinformation to a court anywjhere is serious trouble for ANY company?

IF Sound Energy do not receive a bid that is acceptable to the majority of share holders what do you propose?

Soundingoff, I am interested in discussing the Scotforth/RSDD-H technology with anyone here to see if it would be of potential benefit to sound.
The majority though seem to want to discredit it dspite the information and facts I had provided previously these appear to be unread as there are certainly zero responses to any of it.
If you think/believe or even know for a fact that Scotforth's technology is no good how do you explain away the comments made by Entrada Energy on page 11 of the PDF in below link?

https://fs.ogm.utah.gov/bbooks/2017/08_Aug/Docket/2017-020_274-02_Hewitt/2017-020_20170912.1_RespondentsExhibits.pdf

As for the current share price I believe that it is trading this low as any form of dilution will massively increase the number of shares in issue and therefore cause massive dilution so that the 40p per share on the TE-5 horst will not be reached if we have to go long.
This leads to uncertainty in the markets discounting the share to the current level.

Is there value in the Tendrara license? Yes of course there is,
Why do I say this? The reason for that is that the mid case of 20TCF is on the low side and with a 55% ish recovery rate would indicate approximately 12 + TCF of recoverable gas. This would equate to £9.00 per share if the wells were drilled in the optimum locations, and now we are sub 9pps.

Maldini, I think JP believes he has got duck eggs all lined up and is just waiting for them to hatch...

I hope that the marketing process is not based upon the following:
https://www.youtube.com/watch?v=Nv7qh_XL_yM

Agreed Tableleg, there is vlaue in the TE-5 horst but we only have James' word that financing through debt is available to Sound, there has not been any formal notifiaction of the debt or the associated terms, if available and necessary to bring the TE-5 horst to production.

Sorry Longwait if my previous post was not clear but yes, that is what I meant, the estimates being verified externally with the mid-case being fairly accurate.

As for whether or not anyone else believes them, they don't have to, they can carry out their own independent analysis but I am sure that the volumes that they calculate will closely mirror those of Sound.

As for a company owned by the King taking over the asset, why not? They have already stated that they want the gas out of the TE-5 horst but this would probably only be done if no one else wants to buy it at a price acceptable to share holders.

If this is to be the situation though I just hope we get a decent price for it but if JP is also looking to the same government for finance then, whether or not Gasbag has a Moroccan friend, well the conflicts of interest are obvious for any one to see.

The lack of any information on how finance, if needed, is to be raised is the most telling of all and why we are trading at such a discount.

Agree with you entirely, the Horst alone to us share holdes is worth more than the curtrent 8.5pps.
How do we go about increasing the value to share holders though if no one is prepared to pay much more than the current share price though?
The only way as you said is to drill more wells.
How do you think the State is going to buy us out on the cheap? I don't see that happening, not only would it have a serious negative impact on their reputation, other potential businesses may decide not to work in that country because of it, also wouldn't the PI's have a final say on any sale?

Longwait, Sound's mid case estimates have been pretty accurate so far, if anything maybe a little on the low side.

If this holds true for the rest of Tendrara then we could be looking at approximately 20 TCF GOIP in that licence area alone. This, surely has to be worth £5.00 per share, and some of the people on here wonder why some of the other people who are underwater are getting frustrated.

This is why I see the 3 million raise as a waste of money.

Surely an RNS stating that we have an option to access debt on the table, along with the terms of that debt, in order to bring the TE-5 horst to production and carry out further exploratory drilling would have been a far stronger statement of intent and would put us in a stronger negotiatnig position.

I suspect that it is because Sound have no forward plan that is in the public domain yet other than 'marketing' the company as being the major reason.

Only 3 million was raised, why was that? Was it because that is all that they can raise? Are they unable to access any other line of credit in order to allow the development of the TE-5 horst and additional exploratory drilling?

Or are they currently trying to find other sources of funding?

Yes the Horst maybe valued at 30pps in best case scenario but there is still a huge unknown in how the company is going to move forward with the asset. This is why I believe the share price has fallen to well under the value of the horst and unless news is obtained soon why it will not recover in the near term - too much uncertainty.

Also there may well be 10 + TCF of gas in the licence area but unless we can prove it with the drill bit we are not going to get much if anything for what we think is there.

The one thing that does offer some hope is that the estimates put out by the company on the volumes of discovered gas at the mid case level has been accurate, I therefore do not doubt the 10 TCF recoverable is there, we just need a couple of drills in the right place to prove these volumes.

Shaun, anything you say has zero value and people will be taking your estimates of any share valuation with a huge pinch of salt.
You did not elaborate upon your £2.50 per share prediction with a calculation, may be you will be so kind as to furnish us with some form of logic as to your 50pps valuation?

We shall have to disagree on that point Retour, there is significant amounts of gas in Sound's Tendrara licence area.

To say that majors are not interested, how do you explain Shell and Repsol in an adjacent licence area?

Exactly, calculations on this showed gas flowing at 0.4% of the minimum rate in order for it to bet commercial

If it were to be sorted by the end of September why raise any more funds?

They knew what the situation was when they gave themselves the pay rises, why award it in the first place?
Maybe they are unable to obtain finance for future drilling, or for even going down the TE-5 production route and the only equity they could raise is the US$3.0 million.
Cannot see any positive about this at all, how many companies are there out there that would be interested in buying the asset, cannot be that many surely? I would have thought that if you are taking longer than a couple of months to find anyone interested no one can really be that interested.
Plenty of people on here saying that a sale would be wrapped up by the Autumn, well that does not look to be the case.
What value on the company now? Anyone still valuing shares at 50pps+ with contingency payments?
Or are the people who said 5 to 10pps still going to be shouted down, along with those that said raise finance now to continue exploration/go in to production?
Malcy's comment of 'pleasantly surprised', I think that the use of the word pleasant is completely superfluous...

Joe, that depends where you are going to drill the next well(s)...

Low risk 'exploration', drill the lower risk targets to help shore up the share price, then we could fund raise through debt or equity or perhaps even sell the asset as we have proved up additional commercial gas (hopefully) and may get a decent price for it.

Drill additional wells in the TE-5 horst and bring it to production.

High risk drilling, one more failed well though and this would destroy the company.

If all that is offered is 5-10 pps how many PI's would accept that when bringing TE-5 to production alone will realise far more than that?

I actually think that no one is interested in the asset as it stands and we will need to find additional commercial gas for a decent offer to come in.

Bear in mind that the asset is only being marketed at the moment and not sold.

Below is a link to a paper presented at the GeoConvention that took place in Calgary in 2016.

https://www.geoconvention.com/archives/2016/285_GC2016_Method_of_Aerial_Imaging_Multi-Zone_Data.pdf