one of JP's old email reply's8 Dec 2018 13:36
Here is my perspective…. My role, together with my Board, is to design and then execute a strategy for Sound which makes our shareholders money. We are one of the few companies who set out our strategy very publicly - we intend to drill three wells then sell our Moroccan portfolio. I believe this is a right strategy for this business at the moment. I am excited by it and happy today to hold a significant equity holding in the company based upon it. I have spent 7 years of my life building this company and I have every intention of finishing the job. I believe our story and our plan has never been stronger.
In terms of where the business is at: we have an existing discovery from 2016/17 and huge exploration running room in Eastern Morocco. The last 12 months have been spent shooting new seismic (paid for by our partner Schlumberger), certifying the scale of our existing discovery, preparing for development (pipeline, CPF, development plan) and preparing for the forthcoming three exploration well programme. So we now find ourselves ready to start drilling again with new seismic and three very material prospects. Our primary strategy is to drill and then sell the asset or the company, probably in 2019.
You mention recent positive newsflow… I totally dispute we haven’t had good news for a long period. In good news I include the concession award (6/9), the new petroleum agreement (31/8), the seismic completion (21/8), the funding at advantageous terms (2/7) and the FEED award / BOT exclusivity (7/6). These are all critical to our business and a lot of work goes into securing them.
I agree it’s time for the GSA and I will deliver it as soon as I can.
Let me close but saying that every investor has to make their own decision of course but personally I am hugely excited about the approaching wells and what I expect them to unlock. I provided my view in the Gherkin that people should hold on as the prize here is significant - that is still my view.
James
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