The latest Investing Matters Podcast episode with London Stock Exchange Group's Chris Mayo has just been released. Listen here.
Agree Soundingoff. We have done a lot of work and to some extent have proved our theory although struggled to get gas to flow commercially.
I think we were always time limited. It is no coincidence that JP's trading plan only ran to Mar 2019. I think we have now run out of time and the MG wants a bigger player to unlock the full potential of Eastern Morocco. We won't get the £10 JP spouted on about, nor will we get 10p. If I'm asked to put my neck on the line I would say we will get somewhere between the two.
GLA
Exactly Jones, that's my point. They must have done some work. They didn't just drill a hole, flare a bit of gas and then pack up and head East. They looked for a farm-in so they must have a lot of data that has never been shared and we know it flows.
JP discounted S&M on the basis of the scale of Tendrara, if T is now less significant then S&M might become more of a proposition and support a LE of greater than 20p! (not my figure)
GLA
Not sure they gave actual rates they gave pressure of 98bar and said gas was flared?
GLA
Just been looking for info about S&M, It was a successful well test and then we went for a farm out and then I'm sure JP said that interested parties wanted it included as part of a full company sale.
So SM must have some value and the TCF figures are not insignificant
Sorry to bring this up again but just looking for something to talk about rather than slagging each over off.
Anyone know any more details?
5 July 2017
Sound Energy plc
("Sound Energy" or the "Company")
Â
Sidi Moktar: Successful Koba-1 Well Test
Sound Energy, the Moroccan and European focused upstream gas company, is delighted to report the success of operations to date at the Koba-1 well at Sidi Moktar, onshore Morocco.
The Company has successfully re-entered, completed, perforated and flared gas at surface from the Argovian reservoir (historically the main producing reservoir in the Kechoula discovery).
A five metre interval was perforated in the Argovian reservoir at a measured depth of 1406 metres where the static pressure was measured at 98 bar, confirming a producible gas accumulation. The Company has now temporarily suspended the well in preparation for a rigless extended well test - after which the Company hopes to move rapidly to production. The Koba-1 well, drilled at the crest of the Kechoula discovery, is close to existing infrastructure and gas demand, including the large scale Moroccan state owned OCP Phosphate plant.
The Company believes the Sidi Moktar licences also contain significant pre-salt potential and notes the quantitive assesment prepared by a previous operator in 1998 which referred to exploration potential of the Sidi Moktar licences of up to 9 Tcf unrisked gas originally in place (gross) in the TAGI and Paleozoic. The Company will require the reprocessing of existing 2D seismic, acquisition of new 2D seismic and drilling results before forming its own volume estimates for the exploration potential of the Sidi Moktar licences.
The Company also advises that due to poor quality cement bonding across the Lower Liassic in the Koba-1, and likely the Kamar-1, wells, the Company no longer intends to immediately re-enter the Kamar-1 well (subject to agreement with the regulatory authorities).  The Lower Liassic at Kechoula will therefore be evaluated at a later date together with the deeper pre-salt.
As a result, the rig will be immediately released from Sidi Moktar and will likely return to the Company's licences in Eastern Morocco.
James Parsons, Sound Energy's Chief Executive Officer, commented:
"We are delighted by this early success at the Kechoula discovery and look forward to both the extended well test and to unlocking the deeper, and much larger, pre-salt potential in the future.
Our attention now turns back to our very significant position in Eastern Morocco where we are preparing for further near term drilling and seismic."
Sorry N4£1 my bad. Last thursday you said you needed a sale price of 95p to get back everything you had put into sound. I assumed this was your average. If your average is 33p then I guess you have used some of your maths techniques displayed earlier to arrive at the 95p figure, or maybe you are David Lammy and just adding expenses?
Anyway best of luck to all of us, the lack of actual news is leading to these pointless exchanges, hopefully soon we will have genuine issues to discuss?
GLA
N4£1 I'm sorry you have a high average but don't take it out on the rest of us, we get it you don't like JP because he suckers in the naive and stupid. On that basis you are at least partly right.
Right back to the positivity, £2 a share anyone?
GLA
Calm down n4£1 its a discussion board don't call ppl morons just for having a more positive view than yourself.
I think you have identified what doing deals is all about. You have a buyer and a seller and both have opposing objectives. You think what we have is worth nothing or very little so would only pay around 17-20p whereas I am sure JP would want more.
If I were JP and you were the only offer on the table I would then consider CP. So I would say Ok you think its rubbish, give me 15p and a CP of 10p per additional TCF you find.
Besides both parties will know a lot more about the quality of the seismic and the potential than we do ;o)
That's what doing deals is all about N4£1.
Thankfully JP is negotiating ours and not you. (or Theresa May)
GLA
Agree KTF. Especially when you consider the potential upside for any purchaser. If tendrara does contain 20TCF then that is a massive amount of gas and worth billions. TE5 and infrastructure consents make it a turnkey project for the likes of Shell with huge potential. I think we have a lot to be positive about.
Repsol as a partner or counter bidder - even better!
GLA
Thoughts?
Shell eyes dividend and spending boost after 2020
The world's second-largest listed oil and gas company after Exxon Mobil, underwent deep cost cuts following its 2016 acquisition of BG Group for $53 billion and the collapse of oil prices in late 2014.
Royal Dutch Shell on June 4 outlined plans to increase spending and dividends after 2020 in a show of confidence despite an uncertain outlook for oil and gas prices.
In a strategy update, the Anglo-Dutch energy company also outlined a vision for a future business that focuses more heavily on its gas, power and chemicals divisions as the world transitions to a lower-carbon economy.
The plans to increase spending on oil and gas projects come as Shell set out the sector's most ambitious targets to reduce greenhouse gas emissions from its operations in an effort to comply with the 2015 Paris climate agreement.
Shell said it was on track to deliver on its commitment to increase cash generation and carry out one of the world's largest share buyback programmes of $25 billion by the end of next year.
The world's second-largest listed oil and gas company after Exxon Mobil, underwent deep cost cuts following its 2016 acquisition of BG Group for $53 billion and the collapse of oil prices in late 2014.
Despite a slow and bumpy recovery in oil prices, it reported the largest profit among its peers last year and a jump in revenue from previous years.
"It is the success of our strategy and strength of our delivery today that gives us confidence for the future," Chief Executive Officer Ben van Beurden said in a statement.
Shell said its free cash flow - cash available for dividends and share buybacks - is set to rise to around $35 billion per year by 2025 based on a Brent crude oil price of $60 per barrel.
That compares with $28-33 billion in free cash flow it expects to deliver by the end of next year.
It said the cash delivery "creates the potential to distribute $125 billion or more to shareholders" in the form of dividends and share buybacks between 2021 and 2025.
SPENDING MORE, GIVING MORE
Shell expects to increase its dividend payouts to shareholders once it completes the $25 billion share buyback by the end of 2020 it promised following its BG acquisition.
Shell, the world's biggest dividend payer at $16 billion a year, last increased its quarterly dividend in the first quarter of 2014 to $0.47 per share.
But while offering sweeteners to investors, Shell also outlined plans to increase its spending in the next decade. Rival Exxon and Chevron also plan to increase spending.
Shell said its capital spending will average $30 billion per year between 2021 and 2025, with a ceiling of $32 billion.
The target excludes major acquisitions.
Shell has in recent years vowed to maintain its spending at the lower end of a $25-30 billion range. It spent $24.8 billion in 2018.
Presumably TE10 was useful in that it supported the seismic it just wasn't commercial. If TE10 had been completely dry then that would have cast grave doubts over the seismic. So at least we can have some confidence in the seismic its now a question of delivering the stuff to surface commercially which hopefully shell or repsol could do?
GLA
I thought it lacked any substance or insight. Apart from that it was a bit superficial for me. Otherwise fine.
GLA
Possibly because LSE is such a fragile platform that it's difficult to post!
Can we have a positive day for once? Someone bought 1.3m shares yesterday which probably explains much of the share action in the day, someone obviously has confidence. Let's not be negative we know we have value much greater than 10p in the assets that we have so lets stop talking this down! We are all hoping that this time next week we will be wiser so it's not long to wait.
GLA
KTF was about to say the same. Maybe he's colour blind?
GLA
Lucky I think this is an important issue often overlooked by PIs. JP 'only' has 3m shares (or thereabouts) he will want LE to be as big as possible as he has spent several years here too. £300,000 'simply won't cut it' to a man like JP. He will want a decent LE like the rest of us. I think he probably wants to move on from here as much as most of us do so I very much hope he can negotiate the deal of his life!
GLA
Harsh on BM? How many dusters has he had? I bet the only reason that JP hasn't told him to pack his bags is because he can't find his desk! In fact the other day I'm sure I saw him driving round and round the Tonbridge by-pass because he couldn't find Sevenoaks! (geography based joke as I am currently working in the area)
GLA
Shed if we do decide to drill again why not give GRH off here and Omar off Facebook a go?
To be honest they couldn't do worse than BM at finding gas.
Let's all just hope there is some positive news next week. This BB is depressing at the moment.
GLA
WTD are you being paid by Rupert Cole, sorry I mean JP to manage expectations?
20p for tendrara? the existing discovery was valued at 27p to SOU and with the work that has been done we should get 27p+ as an absolute minimum before any contingent element.
Blimey if that is all that JP can get then I don't think much of his 'deal making' skills.
GLA
JP held by Shaggy and Scooby Doo. Shaggy pulls back JP's mask to reveal RUPERT COLE!
Rupert 'If it weren't for you pesky PIs I'd have got away with it!'
GLA
Crude I watched it too (on iplayer after the pub) but I know nothing about the back story of Regal. If the RNSs at Regal were so obviously false (Investors were told there would be oil when the wells had already been P&A) how come nothing happened to him at that stage in terms of FCA etc?