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Yes, SDX has less volume. The more volume, the smaller the gas price. This is why in my understanding this contract is so important to Sound for the future undiscovered gas, it sets a benchmark for which future discoveries and volumes will have their negotiations for price based-off. Naturally it is also very important for our existing discovery and subsequent value. As pointed out below,a $1 difference in gas price has a 20% impact in value terms. Likewise, I am now hoping for the upper end of the range based upon the FSC comments.
Agree Joe Creed. These are all bonus wells in the grand scheme of things - this is all about Tapi Aike. That said, I am greatly encouraged by Bolivia and we are in a nice position there awaiting results of Repsol and Shell wells nearby. With today's news on EMS, the potential remains for this bonus to be a very big bonus and I think the reason the market misunderstood was that this was not a flow test but an inflow test. Very important that it was successful so that we can proceed to stimulation.
Agree ftseminor that taking a while but complete nonsense on your maths and obvious tactics. Move along!
Hi Ozzie, I did some brief analysis recently and the testing approach/timelines are aligned with TE6 and TE7 timelines. I initially thought they felt long but no, completely wrong and they are inline with before. Much will depend on what we find of course but fingers crossed!!
Echo Energy
Two pieces of news from Echo this morning, from Argentina and from Bolivia. In Argentina the rig has been used to perforate the EMS well prior to the rigless mechanical stimulation and the results show no moveable formation water which is a very good sign. They will now proceed to frac both this well and the ELM gas well, which seems to be in good condition, consecutively.
In Bolivia the company has signed a TEA with YPFB on the Rio Salado Block which compliments their existing stake in the Huayco block which management consider have a potential of 1.75 TCF mean for the whole structure over both blocks. There are two not insignificant fringe benefits to this deal, firstly for about $30/- they get access to the very expensive 2D seismic data shot by BG not long ago and rumoured to have cost a lot of dough and secondly that the acreage is between two wells being drilled by Shell and Repsol in the region, if either of them came in…..
I am sorry, what is there to act upon? Absolutely nothing. For the record I am a long term holder and my position has already been accumulated. For anyone who wants to trade, buy or sell, they can do from 08.00 today and the RNS has been released so really do not understand what you are talking about.
Trellis, I really can not see how this is a leak or inside information. It is one thing intimating that news is due, close or even on Monday, I do not know what was said, but there was absolutely no suggestion in the post below, which I thought was helpful to be honest, of what the news was, good, bad, indifferent and nor that the poster knew what it was. There are heaps of leaks and inside information leaks across AIM but the BOD here are pretty tight and professional, rightly so. I have absolutely no doubts in this regard. For what its worth, the post by someone who attended the CIP presentation is most welcome here and of help to all investors, this should not be deterred by your post in direct opposite.
Shaungreen, you really should not be posting if you are unable to separate fiction and reality. The whole market has been hit hard, not just Sound. If your trust has gone, then sell your shares and be off, thanks!
Good point blocker2. Am a fellow long term holder, holding way too much in one company but that is based on my research at the time and ongoing due diligence since. Am not always happy with the delays but the overall fundamentals remain strong. Very painful watching the SP decline but it is not isolated to Sound of late, market wide blitz. Time for the drill to turn.
How many flow tests were expected? The RNS reads well to start with and then turns south. The key to me is that it sounds like less testing ('only two flow tests') was completed, due to the planning restriction, than hoped and this remains inclusive given the water issue. The follow-up update should hopefully confirm.
Good morning all, I attended the presentation last evening which was delivered with the usual impressive and engaging style. The presentation was video-recorded, usually takes a couple of days before being released by Turner Pope. There was not much 'new' but that is not surprising given the amount of news we have received including the September presentation which took the same form for last night, and what is in the pipeline to come. Clearly very happy with West Brentwood which was significantly above expectations, also with the 2x NED appointments. Both S&S clearly happy with the progress made. I remain very happy with my investment and for what lies ahead.
Tapper2, I purchased among a range of prices, at 90p. My point is that as soon as there is a larger than normal drop or negativity, many posters suddenly appear with a load of complete nonsense, sorry not meaning to group all together, but thats the way it appears. Some fantastic posts and debate on here past couple of days post deep-dive and now all the moans and groans - it is the stock market, prices go up and down. If worried, sell. If okay, hold or buy. The fundamental geology has not changed, it all became much clearer at the deep dive.
Good evening Tableleg, thank you for your kind words, likewise sorry not to have met you but must do at the next gathering. What a unique opportunity and the level of detail presented is a testament to the team that we have. Risk remains with the reservoir effectiveness in the TAGI but the reward remains as well plus the Palaeozoic potential continues to seduce as it is slowly stripped back!
blocker 2, perhaps you should block yourself. It is really quite obvious, Brian does not need to buy any shares, his renumeration upon success has been made clear in RNS news. He also has reputation and his own standard to uphold. I have spoken to Brian on many occasion, met him on many occasion and have absolute trust and confidence on what he is doing. Do some research before come to the board with nonsense please. Good evening.
A few brief notes on today. Will add some thoughts later I expect once have digested.
Huge amount of work and thought which has gone into the basin model, the geophysics, the geology, seismic, analysis. De-risk as much as possible. The basin model was very powerful and some of the analysis they have undertaken quite staggering.
The presentation contained some very impressive slides, video and commentary. Really designed to show the investors what they have been doing, why they have been doing it and how this has been applied in preparation for the well program.
It remains clear that we have a complex reservoir and the reservoir effectiveness remains the key risk.
The TAGI is of poorer quality in Morocco than Algeria (it is a more immature in Morocco) but we have proven that with modern techniques for well completion and stimulation, that we can still flow commercially.
TE 9 and TE 10 have low charge risk.
Potential to trap large volumes.
Good over-view of TE8 and why the TAGI did not flow. TE8 chemically different to TE 5 and TE 6. Much of this to do with where rivers flower and vegetation areas back in the day of the dinosaurs with sands being deposited in different locations.
90 core samples will be taken from the side wall during the drilling of TE 9 for analysis.
TE 9 remains the best and lowest risk. NE Lakbir (TE 10) is on the same trend as TE 5. The new data has turned this from a concept to a fully defined prospect. Stratigraphic plays like this are predominant in Algeria.
The Paleo remains the great unknown but a lot of work is being performed to understand it as much as possible and build a prospect inventory. What is clear already is that the structures are very large and make those in the TAGI look very small. The veyron zone being one. Brian said the Paleo is a “game changer” in his closing remarks. He is clearly excited by this. Reference made to OSD 1, west of our license area, where good porosity was noted in a well which went into the Paleo.
Ifonlyihad, the February 2018 RNS made clear that James would continue in roll for 12-18 months, my maths therefore does not bring me to conclude March 2019 and likewise the LE does not have a set date. I would hazard a guess they will coincide. Good day.
Who would have ever thought a row of trucks and some sand could look so good?! Both tweets are good. Agree with the sentiment on here (I have been swinging back and forth across both camps) that we will drill. This is aligned to exactly what JP said at the AGM. The key I believe is to evidence a second play outside the TE5 Horst and flow commercial hydrocarbons (JP emphasises he is using hydrocarbons intentionally) to surface and that’s what will make people believe and open up for dollars on table for the 10s of TcF potential... or words to that effect. Well worth a re-listen.