Member Info for partridge

Cancelled 40 million share buy from late Friday. You'd think someone was trying to stir the pot here. A few more punters added. Shameless.

The light has dimmed not dawned. The message is: do not invest in this share. If you cannot spare the time to sit next to a computer screen, all day, every day, then you are going to become a long term holder of a pumped and dumped share with mediocre assets. The mug punters are being lined up. They just don't realise it yet.

I know it might appear like a contradiction. I stand by my previous post. What I was trying to point out was that the RNS reads a little differently than what I would expect. It is open to interpretation and the worry is that my previous post assumes one interpretation whilst the RNS could have a different interpretation. Unclear as usual.

" one-year option to acquire a further 9% of Sound Energy's remaining interest in Eastern Morocco Portfolio on the same proportional financial consideration and carry terms as the Proposed Transaction".

The way this reads if the extra 9% option is taken up:

1. Sound will not receive any cash return from the carry it paid for the 23.3% portion it paid the year before. It will receive 14.3% of revenues from Tendrara having contributed 23 .3% to production infrastructure and pipeline.
2. The same proportional financial consideration and carry terms are used for the extra 9% even though Sound only owns 14.3%.
3. If the "carry terms" on the initial tranche(24.2%) is enough to pay Sounds share to get to first gas why another "carry"? Will the option be taken up in order to meet costs overspend on infrastrucure/pipeline?
4. Are the JV partner taking the "carry" cash to pay for future drills? Surely the money should be handed to Sound and allow the management to pay back for future drills when justified.

The concern is that no one is looking out for the shareholder interest. Why is the CFO leaving before a deal is done? Why have the CEO and chairman departed toute suite? There is opportunity for money to be lost here if it is not nailed down.

It should be remembered that the gas at Tendrara is only 80% methane. The MOU was being negotiated around 48.4 MMscf/d, which is what results when the gas is cleaned up. That is why the agreement is for gas delivered at the M04 tie in point of the Gazoduc Maghreb Europe pipeline. A truer figure would be $140 million/year. There would be a revenue from the C2-C4 alkanes recovered in the purification process.

I missed the RNS that said the exploration team is moving over to the JV.
I missed the RNS that said, after 2 years, someone is farming into Sidi Moktar and taking a 45% stake and covering most capex.
I missed the RNS that said the debt does not have paid and we can all sit back and take the revenue with no strings.
I missed the RNS that said Sound shareholders will get a dividend each year and the company will drill a couple of wells each year.
I missed the chance to buy these suckers today. Tomorrow though there will be another chance as there are a billion floating around. I suspect with all the good news I won't be able to get in at 3-4p.
Yawn.

" I think we can see the potential problem here, we have posters who are obviously part of the action group hoping that the letter will cause a 50% reduction in the SP".

Is this one of the most inane comments made on this board? The Sound share price has halved from 90p to 45p and from 45p to 22p and from 22p to 11p and from 11p to 5p and is snaking along on its belly at 3-4p, caused not by the contents of a shareholders letter, but the idiots some fool wants everyone to put their trust in. Those idiots are leaving with company funds they have earned with abstract incompetence. The company will not tell what the current cash position is. They do not want shareholders to know. It is in their interest to keep shareholders in the dark. As ever. We can see the potential problem here can't we?

Sorry. No backsies. He'll grow on you. In a couple of years time he'll tell you that you all love him.

PS Gaspunter, I think I've found your new home.

I think your $118 million cash is correct. That, at £ = 1.25$ would give a figure of £ 94.4 million cash after selling the extra 9% or about £ 70 million cash after paying the debt off (along with the carry). That would be about 6-7p cash/share. The 14.3% share of the horst gas production might be $20 million/year.

Interesting. New numbers on doors.

$112.8 million divided between $54.3 million(cash) and $58.5 million(carry).ound
If the 9% was taken up then that would be $43.57 million, after one year, pro rata.
Because Sound owned only 14.3% then the $58.5 million(carry) would have to be reduced and $21.66 million returned to Sound as cash. And the $43.57 million, for the extra 9%, would be divided into $29.77 million(cash) and 13.8 million(carry). That would give $105.73 milliion(cash to Sound) and $50.64(carry). That could be £84 million, before debt payment.

Jonesy, it's a free bulletin board open to investors and non - investors alike, n'est pas.

You are missing the point KTF, which is most unlike you. It's not about greed or stupidity of over enthusiasm. It is trust. Trust in the words of a CEO. Trust in the person who worked for Shell for several years. Trust in the BOD to make sure everything that is said is true. Trust in a CFO that investors are not being hoodwinked. Trust in experts that what they say is true. trust we are Not being manipulated. Not everyone has your street smarts. Trust is everything. It is sad to believe there is no place for it. Otherwise we will all have to live by the " who the hell believes" mantra. FFS. Hope this is of use to you.

I'm not too sure it is as easy to weigh up the "agreement" as disliking the extra 9%. If receiving the $42 million upfront means having a 14.3% share in approx.14 exploration wells and $20 million cash there is a balance to be made. It all depends if you trust the expertise of the people doing the drilling and the Sound management not to waste funds as they might be doing at present. It's all comes down to trust. And that is why the share price is 3p.

If I am to believe my own figures: that a producing horst would yield $32.62 million at 23.3% and $20 million at 14.3% respectively to Sound; then the cost of the sale of the extra 9% over 10 years is $126.2 million (10years) and $189.3 million (15 years). This is set against Sound receiving $42 million upfront after 1 year ( same carry terms). That could be a lot of wells in Tendrara where the cost of a $10 million well would be $1.43 million (14.3%) to Sound. However a $10 million well in Sidi Moktar would cost Sound $10 million (75% interest).

My figures were a gross estimate and do not include the usual costs associated. Worth people bearing in mind the management will want a slice of this came for their own purposes.

What language does this guy Malcy speak? Just listened to this podcast. When someone says: " **** or bust" people usually notice. I cannot remember Mr Parsons saying or writing anything remotely similar in the past. Or Malcy either. There is, if I'm not mistaken, a little back scratching going on here. Mr Malcy was a little lax on his facts. It would seem his reporting skills are lax too. If he was to be a little more honest perhaps Sound shareholders would be " pleasantly surprised ".

At £= $1.25, that $32.62million is worth £26million or at best 2.6p/ Sound share, whilst $20million is worth £16 million or 1.6p/Sound share.

" all Being well in a Few years the Horst will be producing $170 million of gas per year".

According to the figures given in the MOU agreement the horst is capable of producing $140 million per year.

https://www.investegate.co.uk/sound-energy-plc--sou-/rns/tendrara-gas-sales-agreement--signature-of-mou/201910300700035418R/

23.3% of $140 million is $32.62 million and 14.3% is $20 million.

Read the RNS.

" the Consortium will finalise plans to secure access to some US$184 million of development capital that will be required to fund the Project".

" a target internal rate of return for the Consortium and to a 'not to exceed' fee of US$45 million per annum".

" the Consortium will be responsible for the construction of the Project and for its operation for a period of 15 years".

$675 million. Yes.

Nonsense.

https://www.investegate.co.uk/sound-energy-plc--sou-/rns/eastern-morocco--feed-award/201806070701206121Q/