The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
https://www.youtube.com/watch?v=-mA6ieqaRcY&feature=youtu.be
Latest one out - 12th September so two days ago. Activity certainly increasing, am assuming around the well pad. The steam roller continues to make it's presence felt!
Hi Appiamma, I hope all well with you. Not an O&G expert or a geologist myself, I have a different understanding from the experienced O&G geologist you spoke with when I did some research a while back. I certainly agree it is good to challenge and question what is said and I do that regularly. There are quite a few companies who specialise in basin modelling, Sound used one of them, well two actually. There is a good article Schlumberger oilfield review article on basin modelling which starts off with:
"The success of any exploration campaign depends on the convergence of crucial geologic elements and processes. Basin and petroleum system modeling allows geoscientists to examine the dynamics of sedimentary basins and their associated fluids to determine if past conditions were suitable for hydrocarbons to fill potential reservoirs and be preserved there."
I agree that there is little substitute for the drill bit and proving what lies in each trap but the basin modelling has been especially important here (I believe) because of the scale and size of the basin/area, the complexity of the reservoir need to predict the migration pathways and de-risking the charge. Certainly hope to learn more at the deep dive on the 25th.
Good point to highlight Boderisimus, if someone, Exploration included, makes an incorrect statement of fact, it would be normal if no agenda to hold your hands up and acknowledge the mistake or error. Make of that what we will.
Evening Tableleg, I think the Paleo was known internally for a long time given the comparison with Algeria, however it was at the Gherkin that it became prevalent (in my mind anyway). Thereafter as you say TE8. What is clear now is that they have deliberately played it down between then and until a couple of months ago. Brians’s excellent interview with Malcy was quite revealing on the Paleo and how they are being pessimistic intentionally. That is changing with the Paleo being drilled on TE10, the Veyron zone etc. I like this approach of playing down and then seeing what is there, it is quite kind bogging what it could be that it is best to play it down.
And just to add, the last time I looked, the Tendrara or Greater Tendrara licenses as they are now plus Anoual, is the same size as Belgium or Wales, hardly small for a gas field. One of the key benefits of a basin model and especially in 4D is the ability for Sound to trace the migration pathways of the hydrocarbons.
Exploration, the 7/20/34 TCF model is derived from the 1%\3%\5% Monte Carlo calculation basis applied to the total amount of expelled hydro carbons. I think you are misunderstanding how the basin numbers are derived in your post below ie: you have applied the 1% etc to 34 TCF. In other words it is the other way around, the 7/20/34 is what is expected to be trapped based upon the initial hydro carbon volume being expelled and the conservative Monte Carlo applied. I do agree with you regarding seismic and drilling and indeed that is where we are today. Very very exciting months ahead.
Woodrow, no notice of leaving has been given. Are you referring to the statement in the 23 January RNS when James confirmed to the Board that he was going to continue in his current role for the next 12 to 18 months? Quite coincidentally aligned with LE timing.
Trellis, please read my early post this morning, I really struggle to understand why James owes us an explanation about setting up a shell company for his life after Sound - he even replied to an investor(s) last evening which was posted on here. He is going to have a lot of money after Sound and he has a lot of ambition, quite simple in my mind.
Hi Ponkey, just on the "where is the rig", BillFish posted an excellent post on Monday (I believe) where he pointed out that TE9 and TE10 form part of the new license conditions so it makes most sense for them to be drilled only once that comes into force/signature. It was a post well worth reading by all. I also think that not rushing to drill and what this could mean, is a positive thing.
Morning all, just coming back on a few of last nights/this mornings comments. Firstly James has made it clear that he is here to the end. Secondly, it is also clear that he still has that flame and ambition that many very highly successful business people have, to reinvent and go again. Most of us would head for a very early retirement on a beach but James has said he wants c3/4 more years and then done. Good for him. Thirdly, we are all benefiting from what he has achieved with Sound Engergy already and what we hope to achieve in the coming months. No one knows the ever risk outcome but I have no doubt that James and the Sound team are working hard to ensure it is the maximum it can be. Lastly, we can debate all day long but he has a right to plan for life after Sound, I do that when I look for my next work contract or when I look at my Sound spread sheet, it is sensible to look ahead as long as it does not detract from our main prize with Sound. Something is cooking in the kitchen (situated deep under Tendrara), it smells good and I am very hungry! Good day all.
I would have liked to have learnt timescales for each and every step of the work, however these are not forthcoming for good reason. We have to be patient and wait for the pieces of news. It is going to take a little longer than we hoped but we have a highly competent team using their own skills and those of external parties, we are well financed and we have a potential monster to test and then a potential monster to seismic. There is no certainty in this game but the closest thing to it is that Echo will do all they can to deliver the results we want and at the same time, hold open Q&A like today.
When asked whether confident the next future of company will be bright, Fiona's reply (below) sums up the current state of play very well in my opinion:
"Yes we are , we have proven up gas in the Eastern flank, the ELM well remains to be stimulated the EMS well remains to be tested and we are about to commence shooting seismic across our frontier scale Tapi Aike acreage which will move us closer towards our drilling campaign on that licence. The results of CSo 2001 were disappointing to find out that we had significant depletion - but that is one piece of a big picture".
Evening all.
Hi 250SWB, I have not put my thinking cap on around the tax side of things but expect there is a more than comprehensive tax plan built within the plan and driving the plan. It would certainly make sense and I think ajbjasus just highlighted the difference in the treatment of profit at exercising and on subsequent gains. What is also interesting, if this is indeed said sale, is the trigger looking like the production concession. All the pieces of the jigsaw coming together. The RNS read very very well today, the wording clearly highlighting certain parts of the jigsaw and placing way markers and reminders for the reader. Like it.
You can't see we have not been warned, it has been telegraphed quite clearly. If you multiply 0.1425 x 1.25M options, c£178k is required so this does look like it is. But should be no surprise, alarm or panic, it is as expected and I am assuming the production concession may have been a trigger, who knows.. This mornings RNS read very, very well in my opinion. Exciting times ahead.
Whosedaddy, couple of typos in your post, sorry am a stickler for accuracy, "gamble" and "mostly" can mean such different things, said with tongue in cheek so excuse playing with your post
"haha okok what I mean is that an investment in SOU at this stage is based on SEISMIC, GRADIOMETRY, BASIN MODELLING, THEN 3x BACK TO BACK WELLS PLUS A NEW PALEO PLAY WHICH MAY BLOW THE LOT AWAY, albeit with ALL IF NOT MORE of the current price backed up by the TE-5 concession."
replacing:
"haha okok what I mean is that an investment in SOU at this stage is mostly a gamble on a 30% COS at TE-9, albeit with some of the current price backed up by the TE-5 concession. "
Good evening ladies, gents and de-rampers, what a day. I think we will look back on today as quite a definitive day in time to come. Firstly BMD who I have had an exchange of opinions with over the past 24hrs on twitter tried to sink the placing by conducting market manipulation and dissemination of inside information, he failed. Secondly, in that we have secured a placing at a fantastic price (look at recent placings in the sector!), thirdly we brought in M&G a huge name and massive endorsement of S&S, fourthly we are now looking down the barrel of new exciting and accretive asset(s). S&S are very much the real deal, acting with integrity and determined to develop a legacy of significant upside. Exciting times ahead in my opinion.
Good thinking SO. I am sure the trading plan will have some elements to it that allow some flexibilities, the devil is in the detail. The other thing which occurs to me, if Sound gets taken out before the 23 March 2020 3M options vest, JP will be entitled to these as well as existing share holding, so in many ways, an early deal will suit him. With the September 25 vesting options, only a relatively small sale would cover the entitlement, the plan may sell down further, however, the 3M in March would still be on the table plus whatever of the 2.1M+1.25M less sold shares equates to. In other words, I am not convinced it is as black and white as we perhaps think and there is potential for James to have interest of a lot more than the 3.1M come LE. We shall see.
250SWB, the September 2018 vesting is 1.25M as opposed to the 2M. But you are right some shares will have to be sold in order to take up the options.
https://www.thetimes.co.uk/article/coro-turns-up-gas-with-its-first-deal-5j8dgd9bv
The Transaction
Coro is stepping in to a deal that was originally agreed between AWE (Satria) NZ Ltd ("AWE"), a subsidiary of AWE Limited (the current asset holder) and HyOil (Bulu) Pte. Ltd ("HyOil"), a subsidiary of HyOil Pte. Ltd. (a private Singaporean company). This current transaction is being effected through both a tripartite agreement ("TA") between Coro, HyOil and AWE, (in which the original Sales & Purchase Agreement between HyOil and AWE is terminated); and a new SPA ("ASPA") between Coro and AWE.
Coro, AWE and HyOil will be working together and with relevant government authorities to close these new agreements. Under these agreements, Coro will pay HyOil up to $4 million in Coro shares and will pay AWE a total of approximately $8 million in cash to cover the purchase price, cost re-imbursement and other working capital adjustments.
Specifically, Coro will pay to HyOil:
· $2 million on closing of the transaction which will be satisfied by the issue of 42,434,465 new ordinary shares issued at 3.6255 pence each, calculated as the 30 day volume weighted average price of the Company's shares as of the signing date of the TA; and
· $1 million in new Coro shares upon the signing of the first Gas Sales Agreement. The shares to be issued at a price equal to the last closing price of the Company's shares, as reported by the London Stock Exchange ("LSE"), on the date immediately following the date of signing the GSA; and
· $1 million in new Coro shares following the start of commercial production from the field. The shares to be issued at the closing price of the shares as reported on LSE five months and three weeks from production start up.
Pursuant to the ASPA, Coro will pay to AWE a cash consideration of US$6.96 million, plus back costs and other working capital adjustments estimated to be approximately US$1.04 million. AWE will be liable to pay all transfer taxes that may fall due and payable on the transaction up to US$640,000.
As a result of these transactions, Coro will become a direct 42.5% holder of the Bulu PSC. The remaining 57.5% participating interest in the Bulu PSC is held between sole operator Kris Energy 42.5% and two local partners, Satria Energindo 10% and Satria Wijaya Kusuma 5%.
Completion of the transactions is conditional on, inter alia, JV partner pre-emption and regulatory government approvals. Further announcements will be made as appropriate.