focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
John, if the institutional investors are that clever and don’t expect the share price to double from here, why have they been loading up over 18p for the last 6 months as the quarterly presentations show? To be honest, nobody knows what the future holds. No point speculating or trying to read things into to everything. True value will out eventually.
Everything seems to have gone according to plan so far, and surely the natural fractures will significantly aid stimulation and connection of all payzones to create commercial flow rates. The fact that they are stimulating all zones through the one perforation says to me that they are going straight for the stratigraphic play . Even on the quarterly presentation the two zone’s figures are combined. Let’s just hope it’s mid to high estimates.
From a previous rns, they stated that they expected to start stimulated flow test mid March with initial results by the end of the month, so it is highly likely we will get news next week. Fridays SP movement was very unexpected considering we are so close to results, and has made me even more nervous. But I have every faith in the team. All indications from the Company would point to s successful commercial well. I think that there are outside forces at work on the SP for other means. I expect II holdings are on the rise ....
Thanks Ericnat, that's really interesting as there are some significant implications to this as I see it, but then I know nothing . If both sections are going to be stimulated together and through the already perforated primary zone, then does this not imply that all three zones payload will be combined together to give one almighty flow rate rather than three intermediate flows. But as I say, I know nothing about this so could be barking up the wrong tree altogether.
For any new investors to sound that didn’t know that Schlumberger have a very informative video section to their website, take a look at this link on coiled tubing. Looks spectacular . Definitely gives me more confidence while we wait the results. https://www.slb.com/resources/videolistingpage.aspx
I expect that the Company has had instructions from the nomad to withhold all information relating to progress of TE10 . I wouldn’t jump to any conclusions. Just sit back and relax and wait for when we do get some news which will be significant one way or the other.
▪ Tendrara campaign. Sound’s first well in the current three well programme (TE-9) was drilled on the A1 prospect which had a primary target of a Triassic fault block. The reservoir quality was poor. The company spudded its next well (TE-10) on 7 December which is targeting a large stratigraphic trap and a smaller structural closure. P50 unrisked gas in place is estimated at approximately 2.8 TCF, worth potentially 110p/share. This is expected to take 30 - 40 days to complete. Once this is completed, management is looking at drilling a Palaeozoic target although the precise location of the prospect has not yet been finalised. This programme has been selected to explore three major geological targets and will then allow the management to ascertain the potential running room in the licence for future drilling programmes or to demonstrate sufficient understanding of the basin to be able to monetise the assets early. ▪ Valuation. Using the industry standard valuation of a discounted cash flow analysis, we derive a valuation for the Sound Energy’s share of the TE-5 discovery of approximately US$360 million which adjusting for the cash equates to a value of 27.2 p/share. This uses a gas price of US$8.9/mcf in 2019 and is escalated at 2% per annum. The discount rate used is 10% (with a 2% reduction increasing the valuation by a further 17%). Using this metric as a basis for the exploration upside, one could assume that a discovery of 1 TCF net recoverable resources to Sound Energy could add a further 166 p/share to the asset value. Investors should view any valuation in the context of their own assessment of relevant risks.
I see on the Q1 presentation, we may see some expected news flow from around mid-April now.Perhaps 10 more days and we might hear something critical. It will be interesting to see how the SP performs next week now the new tax year has begun.
Good luck all, the wait is nearly over regards TE10 at least.....
Sound Energy, the Moroccan focused upstream gas company, is pleased to provide a further update on the TE-7 well reservoir pressure, following the latest retrieval of the pressure gauge data. The measured pressure data provides further information on the extent and quality of the reservoir at TE-7 and provides additional confidence for the development plan of the Company's existing TE-5 Horst discovery, which remains subject to Final Investment Decision. The latest pressure measurements reveal a current reservoir pressure of 413.4 bara at the TE-7 well location with the pressure continuing to increase towards the original reservoir pressure of 422.6 bara confirmed by the Company on 19 July 2017. The period of pressure monitoring has been extended to observe this continued pressure increase and will continue. The pressure build-up trend is important information as it allows the Company to estimate the connected volume of in place gas ("GOIP") accessible by the TE-7 well. Analysis of the pressures measured in the well recorded over time has led to an increase in the Company's estimate of connected GOIP around TE-7 to a volume exceeding 115 Bscf. Historical analysis of the pressure trend, announced on 19 July 2017, had previously shown that the volume of connected GOIP around TE-7 exceeded 40 Bscf. The significant increase in the Company's estimates of minimum GOIP connected to the TE-7 well provides support for the Company's field development plan consisting of a number of horizontal stimulated production wells spaced to optimise recovery.