Member Info for Mancave

For context my question was:

" was wondering if you could inform as to whether the GSA is still being finalised and how long the marketing process is expected to take"

Response to GSA query was:

"Yes GSA to follow.  No change there following ONEE offer announced a few weeks ago."

Seaton

Extract from JP's reply to an email I sent earlier this week covering timelines among other things:

"I can’t comment on the marketing process timeline.  What I would say is this timing was always the plan subject to well results."

Just...............why?

Morning all

Are we expecting a company announcement on NewCo?

n4a - have to agree with you. A bit of a wake up call regards LE value. I think the days of 4 digits/£10 many multiples of have gone.
With a 0.69 average I am hoping JP et al maximise our return but have to temper my expectations with a healthy dose of realism - although miracles have happened, and may still happen.

Jack - I think the expression is 'blinded by science' or 'bullsXXt baffles brains'

I asked the question and that is the reply I received - hopefully someone on here can translate into laymans terms?

Received from JJ 28/11/18:

Dear XXXXXX
 
We don’t steer on valuation partly as isn’t our job as a company and partly given we are not yet at FID and we don’t have GSA or FEED or development capital. We are looking into if a third party research provider can make an estimate of the valuation for the shareholders.
 
The rule of thumb that we have given you is that 1 TCF of recoverable gas resources for Sound is worth approximately £1.50/share. This rule of thumb was given to shareholders at the end of 2017 and it has not changed.
 
Let me explain how we get to that number.
  
The £1.50/share rule of thumb is the net present value of 1TCF of recoverable gas resources for Sound. It is scaled up from the economic models that we are maturing for the Te-5 field.
 
The £/share rule of thumb is based on Sound’s equity in the recoverable gas ie Sound equity gas on one end of the calculation and pence per Sound share at the other end. Hence a notional 1 TCF of Sound equity recoverable gas is approx. £1.50 per Sound share. Remember Sound has a 47.5% stake in the Tendrara licence hence a 1 TCF discovery for Sound shareholders equates to a 1/0.47=2TCF gas discovery.
  
The rule of thumb is calculated using a 10% discount rate, from an undiscounted free cash flow of £4 billion, or £3.90/share undiscounted, for 1 TCF of recoverable gas resources.
 
There are in reality a wide range of potential economic outcomes from a new development. You should expect this rule of thumb to move around (up or down) as we get closer to the Te-5 FID, which is an important calibration point for the economics of the exploration programme.  
  
For example, a 2 percentage point reduction in the discount rate would increase the rule of thumb by some 20% to £1.80. The calculation uses an $8/mmcf gas price, and a $1/mmcfd change in gas price would move the NAV up or down by 20%. 
 
Please do let me know if you need any further information

Very odd amounts being traded........

I am sincerely hoping that "informal chat over a pint" does not equal the Liquidity Event.......

Apparently JP is abroad.......

Gozo - received an email reply to a couple of minor queries from JP this morning.
Nothing earth shattering but he is replying.

n4a - as is evident by SOU - a director buying is not a precursor for success......

Just found this:

ANNOUNCEMENT RE S303 REQUISITION
Seafox International Limited ("Seafox")

31 January 2019
Gulf Marine Services plc ("GMS")
Seafox notes GMS's announcement today and its reference to the disproportionate number of Seafox proposed directors as compared to the total size of the GMS board.  As a result of this together with feedback from other major shareholders, Seafox has written to GMS requesting that the convened general meeting consider the appointment of further directors if proposed or requested by any other shareholders and that GMS seek recommendations for any such appointments from its shareholders. 
Seafox would be supportive of a Board of 10 members comprising up to 5 new directors to be appointed at the General Meeting (including the three new directors suggested in our announcement dated 30 January 2019)."

Apologies if already posted.

You didn't specify what shares.....:)

n4a - what goes around comes around my friend - staying upbeat and hoping the TVR issue is the precursor to a stonking RNS - stranger things have happened.

I happen to have 20k Frontera shares knocking about somewhere.........

*excerpt

Excert:

"But Shell's strong results are set to raise confidence in the company's strategy of boosting cash generation by focusing on high margin businesses such as deepwater oil and liquefied natural gas.
"We delivered on our promises for the year, including the completion of the $30 billion (£23bn) divestment programme and starting up key growth projects while maintaining discipline on capital investment," CEO Ben van Beurden said in a statement.
"We will continue with a strong delivery focus in 2019, with a disciplined approach to capital investment and growing both our cash flow and returns." 

Ponkey - where in East Kent? I live in a village about 6 miles south of Canterbury.

Thanks for that N4 - I will now go back into my cave and not come out until Summer 2019..........

and 09.01.19:

Hello XXXXXX
The sequencing now is de-mobilise the rig, make a decision re stimulation, secure the testing (and stimulation) equipment from outside Morocco, mobilise it all then proceed.  So far we have guided February testing.  I would like to stimulate at the same time (rather than leave a prospective buyer to extrapolate scientifically which is quite possible but nothing better than the actual rates) but we are yet to formalise the decision.
 
Ground works for TE11 will be after the test.  The prize on TE10 is huge and I want this done carefully.
 
No change re our strategy to drill then sell.  I expect to be here through to the sale.
James