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Ivans, that is because the farm out news was a disappointment to the market. Compare apples with apples I would suggest. West Newton is lining up to be a staggering asset and there will be a lot of news flow in the weeks and months ahead.
Jones 1980, ‘Oil Man Jim’ has about as much knowledge and insight as most of the members who have miraculously appeared from no where on this board in recent months but pertain to be experts in Sound Energy, O&G and common pleasantries to fellow humans...
WhoseDaddy, that is quite a bold statement - it all depends on perspective. I very much doubt that AMER share holders will be expecting or happy with that offer. Just like many here would not have been happy with a low cash offer being accepted. Then again, some are not happy with the deal we have as well.
The trouble we have is that the offer is below expectations and we have a smoke screen of uncertainty around it. Once that has lifted, I think many may change their mind with exposure to future cash from gas sales and further exploration.
EGM, I reported your post because it was abusive. No one should tollerate any kind of abuse on this chat board irrespective of the sentiment about the share price. Simple. Well done for reposting without the abuse.
"The Company will also provide the Purchaser with a 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"... at a minimum it gives Sound a 9% greater share in whatever happens in the first 12 months, and that wont be production, so exploration, at best it could be at a higher price (I do not agree that this states the same cost because it iis talking about proprotionality between the two elements), worst case it is giving a furthe r9% for the same price as now , which does not make any sense. Suggest we all await for further details
Ericnat, have you given thought to the possibility the 9% is actually a beneficial aspect of the deal? I am wondering whether this is there to facilitate a contingent type payment on the basis of exploration success in the first 12 months. The RNS does not say the 9% will be sold at the same price as the main deal, but on the same % split carry/cash. I have been wondering how exploration success would be returned and this could be part of this. Upon exploration success, the asset value increases as does the price for the 9%.
We do have to wait for the full details to emerge but I very much doubt that a deal would be structured for an additional 9% at the same price as the main deal, as otherwise just include in now (ie: the production revenue would be unaffected as there will be no production until after the 9% part has been concluded).
Just another possibility.
I think anyone who things a GM, EGM, vote or whatever in the midst of a marketing campaign really needs to get a grip of reality and what is in the interests of the company and shareholders to be honest. They have said X, let them do X and then we can decide if we like X. None of us like the share price or the well results but we also need to recognise that the company would not have paused and marketed if it did not think there was a reasonable chance of achieving a result - otherwise would have carried on with operations (and could still have marketed in the back ground).
As an aside, I have just read the SP Angel broker summary on today's RNS:
"Conclusion: Sound will hope to conclude it’s Eastern Morocco sale as soon as possible, and the recent placing leaves the company in a solid financial position going into these negotiations in our view. We remain bullish on Morocco as a potentially significant region globally, with significant gas demand and a push to reduce its dependency on Algerian imports. Therefore we would anticipate that Sound will have a healthy audience of admirers for its Eastern Moroccan assets."
One of the most positive and sensible things I have read for a long time.
Good afternoon all.
Zoom, thanks for the info on your visit. I was looking back at the images and videos from Sharetalk and do not think the schlumberger lorry leaving, Tuesday 4/6, was a wire line unit. The Halliburton truck on site from Saturday 8/6 most definitely is. I swing between we are at TD and they are logging both intervals, to thinking we are logging the gas before drilling to TD. The timeline would suggest the former. I see the road closures as a good move all round. Fingers crossed!
Sorry Jones1980, misunderstood. I am not so sure we would ever get to know about the NDAs - if several parties are interested and are given access to our data room, I would not anticipate RNSs. I think BPC was further down the line when they entered into an exclusivity period for the external company to have a period of time to review the company with a view to a transaction. Interesting though.
Hi Tableleg, funnily enough I was thinking about your post just then and how it could be framed as a well worded email to JP for clarity?! Your raise a good challenge to what I actually think is a good approach being adopted. The flip side as you say is to obtain additional funding and drill the less risky/reward wells packaged up for the would be purchaser. I will be brief but incame away from the AGM assures, confident and satisfied that the team are continuing to do all they can for the best outcome. Their incentivisation is huge, their disappointment in the drill result plain to see, but still taking the flak, questions and comments head-on. Rightly so but rarely seen in other companies. That all aside, I do remain confident we will get a favourable price, not what I wanted or hoped for, but not the derisory stuff I have seen mentioned on here today. FWIW I would expect this to include a contingent on future wells. I am also intrigued by Schlumberger license not yet being sorted for the production license...could see them taking capital gain here and using that for the exploration to follow on the licenses they are now officially on. Just a thought. I reread the progressive report this evening, 26.6p fully diluted for the TE5 Horst, sounds share alone (supporting Prudent’s earlier post). And that is before a value is attributed to anything else. Will be interesting, difficult times but a few twists and turns ahead. Hope all well with you and sorry for the long post. More than happy to expand thoughts further, I do have a few!
Trademeup, in my opinion the forward looking marketing is a ruse, it has either already been done or the interest (as we were told previously back in Nov.Dec re: Sidi, where companies expressed interest in both eastern and western assets) has come inwards. Quite simple really. Multiple parties, differing agendas. Hopefully will add some spice and extra £s to the negotiations.
Exactly Lelo, James said that they rejected the GSA offer as think can do better and now negotiating on that. Wants more upside and less downside in the equation of the GSA. JP and the team are more than incentivised to drive and strike the best possible deal for the asset or company. The GSA is but one component of that.
or he had 3 months notice, hence 13th August. Eitherway agree it is interesting timing. He may of course just be wanting to retire and can see the hard work is about to pay off. Critical couple of weeks ahead!
Thanks Exploration, interesting.
A quick re-cap on what was said in the 18 February RNS on fractures; "The Company has recognised the presence of a fracture network in both the FMI data and side wall cores. The potential for a positive impact of this fracture network on the net pay calculation was not included in the scope of the petrophysical analysis undertaken by ERCE but will be considered once the well has been tested."