Member Info for Maldini1

Morning all,
Excellent news from T7 this morning. I’m speculating whether this morning’s news is designed to send a strong signal to prospective buyers about the potential of TE10. I.e. it’s taken over a year of extended well testing at T7 to demonstrate its increased payload, If the business is sold this year, and anticipating that TE10 is commercial, we won’t have the same timeframe available for an extended well test at TE10 so I’m hoping that this morning’s RNS sends out the right message about the prospectivity of the basin. A leap of faith on my part of course... but hope springs eternal.

Thanks Dixie. I suspect that you’re probably more knowledgeable than I am on the subject which is why I wanted to understand a bit more about overpressurisation.

PS for anyone trying to access the link I provided earlier; if it doesn’t open the full article try trying “ How abnormal pressures affect hydrocarbon exploration, exploitation” in the search bar (its an article by Gordon Holm dated 01/12/1998)

Morning folks,
Dixie, Re your discussion with J.A, I came across this article on overpressure systems. To my non-exploration eyes it seems to show some to similarities to TE10. One point that stood out for me is that it’s more difficult to predict gas volume in these systems (hence recent change in low/mid/high cases?) but that there is also a good chance that overpressurised reservoirs may contain 2-3 times more gas than more conventional reservoirs. This is of course my noddy interpretation of what the article was saying but there does seem to be more than just some coincidental correlation between the article and description of TE10. Maybe wishful thinking on my part.

https://www.ogj.com/articles/print/volume-96/issue-2/in-this-issue/exploration/how-abnormal-pressures-affect-hydrocarbon-exploration-exploitation.html

I like your spirit Shaun. We’re all here to enrich ourselves.

Fellow investors,
Anyone investing in O&G will no doubt have their own stories to tell of elation, frustration and downright despair, all in equal measures, me included. I truly sympathise with fellow Sound investors at the moment, both long termers for whom the long wait has been agoninsing and also more recent investors many of whom are currently sitting on significant losses. In an effort to inject some enthusiasm into our hopes and aspirations, may I therefore recommend re- reading the RSNs relating to both TE9 results and TE10 updates. For me the difference in tone and expectation between the two could not be starker which leads me to feel increasingly confident of a good outcome. Whatever our personal positions in Sound I sincerely hope that we all get what we want in the end. As John Lennon once said: it will be alright in the end... and if it’s not alright it’s not yet the end.

Thanks StMary, that’s one more option for the pot..... and I’m with you on the quarterly returns...and then only with the help of Xero accounting software??

StMary, the thought of a special dividend on known resources is intriguing. However, would that not suggest that we would have to borrow money in the short term in order to pay the dividend and also secure future revenues in order to repay any loan used for this purpose (go into production as NEWCO on the TE5 Horst perhaps?).

MikeGP,

Confirmation that all the gas from the TE5 Horst will go to the domestic market also validates Morroco’s decision to delay plans to move forward with LNG. As LNG is significantly more expensive volume for volume, the key question for me is how much of a premium is Morocco willing to pay for the addition security of supply that our gas will provide?

Thanks MikeGP. That would tally with the Progressive note issued back in December which had assessed a TE10 value of £1.10 based on a mid case estimate of 2.8 Tcfs. However, if TE10 also serves to prove up the basin model then it’s game on for an exciting few weeks.

Folks, validation of my thinking below would be appreciated.

Clearly hoping for commercial flows at TE10, but noting the mid case figure of circa 1.4 Tcf if the strat comes in, would this mean that our assessed net share of the TE10 pie could be in order of 3-400 Bcfs?

Smallville, it’s still possible that TE10 may end up being part of the GSA as Tableleg suggests, but like you I sincerely hope that today’s RNS is a nod in the right direction as to the commerciality of TE10

Morning everyone,

From RNS 28Jan 2019:- Based on the Company's current assessment of the reservoir section, a stimulated flow rate of approximately 1.5 mmscf/d to 2mmscf/d, is likely to be commercial (as a tie-back development to the TE-5 Horst existing discovery). This commerciality threshold would be materially lower if the stratigraphic upside materialises as the TE-10 development would, in that case, be a standalone development.

Perhaps this morning’s RNS hints that even at the pre stimulation stage, they already know that TE10 will be a stand-alone development ??

Thanks Lelo, that puts that to bed. However that being the case, it does then beg the question as to why Sound would need to set up Newco when it already has Sound Energy Morroco South in place to deal with Sidi. Could it be that JP is planning something for Tendrara for which a new subsidary becomes necessary?

Evening everyone, Can anyone remember what happened to the Heads of Terms which Sound signed with Culebra Petroleum Limited back in March 2016? At the time the intention was for Sound to sell 66.67% of Sound Energy Morocco South which would effectively entitle Culebra Petroleum to 50% working interest in the Sidi Moktar Licences in return for a firm commitment by Culebra to develop the licences.