Key points for new investors accumulate and hold!7 Nov 2024 22:44
1) SNDA are finalising funding with Pacifc LNG. Why would they use the word finalising, could have used progressing or continuing. It was also the October 2024 presentation, this means it’s very close!
2) The funding will cover both appraisal and potential development costs. Share options triggered which could mean many things but considering everything so far, could mean funding is very close!
3) Best likely case, equity structure that would result from this funding, 60/40 split would be acceptable. I would not take anything less, 30% will be extreme. This all means smaller ownership share for SNDA (40%), but not in SNDA hands. If funding comes share price rises simple.
4) Environmental Baseline Survey is scheduled for Q4 2024. survey is essential for securing the environmental license for the project in Timor-Leste.
5) SNDA is negotiating a rig for drilling, start date was delayed slightly due to extended use by other operators. Delayed till Q2 2025, not that far off. At least not delayed till next christmas or 2026!
What you are investing in: The Chuditch gas field in Timor-Leste has significant revenue potential, with an estimated 1.16 trillion cubic feet (Tcf) of gas. Further exploration may raise this to over 3 Tcf if nearby prospects are included. Revenues depend on factors like production levels, gas prices, and infrastructure.
Summary: Best Risk/Reward stock on AIM with high chance of funding. Then high chance of good revenues coming from GAS which could take share price over 1p+ or more 2025/2026.