Malcy's blog5 Oct 2017 13:11
Still traveling so a flash blog today�.
Sound Energy, Saffron, Po Valley
Sound has announced a heads of terms with Saffron and Po Valley by which Sound disposes of its portfolio of Italian interests and permits to Saffron. They will receive Saffron shares which they intend to distribute to shareholders. This, together with the grant by Po Valley to Saffron of a call option to acquire all of Po Valley operations Limited will result in the combination of the Italian oil and gas portfolios of all three companies to be re-named Coro Energy plc. James Parsons is to be the non-executive chairman, Sara Edmonson CEO and Fiona MaCaulay will be a non-executive. Sound will retain the rights to the Badile land, in the books at �1.6m plus Italian VAT receivables of �4m.
Coro is to be a mid-cap regional gas producer and explorer, and will become a consolidated Italian vehicle with a European gas �growth trajectory �. It looks to me like a creative deal with Sound shareholders receiving shares and post regulatory suspension could be very exciting. The best if the directors, management and combined on the ground teams will play to their strengths and I wouldn�t be surprised if Continental didn�t appear as a cornerstone investor.
This looks very like Sound 111 with an accent on fair treatment of retail investors as Sound and Echo shareholders have become accustomed to. With the excitement of the return from suspension and the formation of another new company to look forward to, tonight�s river cruise should be quite a party�..More later obv�..