Member Info for Soundingoff

Any reason why it would be worrying if it's published as normal, before the reporting deadline?

I should clarify though, I'm talking about us as investors, as that is what Ian is suggesting.

Sound didn't really pay for anything, they just ascribed a percentage of shares for a percentage of the field. Value per share is the only valid metric given the share price isn't set in stone.

'This was JP's so-called "accretive deal" that diluted the shares in issue by no less than 37% for NO gain for us as shareholders that I can see as of yet unless I missed something.'

You've missed the increase in the percentage of the field ownership, which was more than 37%. Ergo it was accretive.

'Just hope the Chairman and CEO statement in the impending half yearly report addresses the time and cost delay'

Do you still believe the delay was down to poor planning Pontcanna? On the evidence to hand, it appears fairly clear the delay was down to planning for sale.

I've made the same choice as you PNE and continue to buy. NPV is considerably north of here, and even in administration (which with our financial backing in-country is unlikely) the return would be a multiple of the current SP. The significant risk is no deal happening and having to raise and continue. Again, I don't see raising as an issue, but it would be more time invested. However, given the parties involved, a deal is needed to progress the development and exploration in the area. Everyone involved will be realistic and therefore the odds on a deal are good IMO.

'I do not believe that there is not a single thing that the BoD cannot inform us of to restore some confidence that the price will rise on a sale of the company. I have been in a couple of other AIM shares before and when the comms are suspended it is the harbinger of doom.'

DDBoy -I think you're mistaking a 'comms shutdown' with a 'comms shutdown during a company sale'. There are many examples of the latter and it's perfectly normal. Of course that doesn't always mean there is success.

Logic tells us that suggesting the marketing exercise is a stalling tactic is frankly ludicrous. Anyone who understands what is involved will know that- in terms of parties, time, processes taken and costs involved. And it certainly can't tell us there is or isn't an offer on the table, given this is a process with a deadline for bids.

'30 April 2018
Sound Energy plc
("Sound Energy" or the "Company")

Director/PDMR Shareholding

Sound Energy, the Moroccan focused upstream gas company, announces that it has been notified that Greenberry plc ("Greenberry") has today purchased 100,000 ordinary shares in the Company ("Ordinary Shares") at an average price of 40.46 pence per Ordinary Share.

As a result of this purchase of Ordinary Shares, Continental Investment Partners SA ("CIP") and its affiliates are interested in a total of 18,775,509 Ordinary Shares, representing 1.85% of the Company's issued ordinary share capital.

Marco Fumagalli, a director of the Company, is Founding Partner of, and a 25% shareholder in, CIP. Greenberry is an affiliate of Continental by virtue of its common ownership.'

That should be where Marco is at.

The last update had OGIF at 25%, directors at 2% and Institutions at 14.3%, totaling 41.3%. The balance is retail investors.

I haven't watched it again, but I think it's this one trellis.

https://www.youtube.com/watch?v=pRjmXIzeNso

This board or the marketing process?

The marketing process is ongoing with a deadline for offers. When the deadline has passed and any offers have been reviewed, we will be advised of whether there is an offer to accept or not. If not, we will be advised of what the Board view as the best way forward. We should not expect any updates on this process until it has ended. We know there have been more than 10 companies reviewing our data and receiving presentations.

This chat forum is overrun with moronic abusers, of both the Sound Board and individuals who post here. Some posters may be genuine but abusive, and others may not be genuine and are posting for their own gain.

Lekoil is a completely and utterly pointless comparison as was discussed the other day. You may as well say that because I bought my house for 20% off asking price, that means the Horst is worth 20% less than NPV10. What a waste of management's time.

'Conceptually if there was no offer or we received offers and didn’t elect to propose any then we would have to raise funds and continue drilling and developing ourselves with our partner Schlumberger I suppose.'

That sounds like they haven't considered the alternative too much. You can take that two ways, depending on whether you're positive or negative ;)

wh0s- You know full well both you and I made the distinction between discounting and risking in our previous discussions. So stop being silly. I have some old scuba gear in the garage that you can have to plumb the depths further if you want?

We only have to look at the makeup of OGIF to know that 'any old offer' will not be presented to us. Someone will pipe up that OGIF got their shares for free and they'll take whatever they can get, but that's rather ignorant. OGIF, like any other investment fund will assess the offer based on investment criteria, not what someone else told them they could get or the promise of golden tickets washed down with booze and chicken dippers.

An offer will ultimately be considered in relation to NPV. Interested parties are not there for fun, if they bid it will be serious. And none of them would want to sour their relationship with OGIF, ONHYM or Morocco.

Agreed partridge, we are talking about a very near term development. Many developments sold have much longer time frames to first gas and a greater number of hurdles to clear.

'You think TE-5 is worth more than 27p per share, S/O?'

The potential is there Longwait. We've already talked about the connectivity below, but I understand we have modelled on 50% recovery, whereas the expectation appears to be closer to 60%. As an example, a 10% increase in recovery would increase the NPV by around 20%.

I don't think people really grasp the opportunity the Horst development is for O&G producers.

Indeed it will need time and money n4a, but relative to many developments, it'll be cheap and we've done much of the work despite what some may say. Given you've moved onto the wider area, I'm guessing you've moved on from our point.

wh0s- Of course it's risk vs discount, but I didn't want to complicate matters further. As I've said before, from the stage of development we're at the risking will be minimal from my research. The reserves are certified and the latest EWT provided the following:

'Sound Energy, the Moroccan focused upstream gas company, is pleased to provide a further update on the TE-7 well reservoir pressure, following the latest retrieval of the pressure gauge data. The measured pressure data provides further information on the extent and quality of the reservoir at TE-7 and provides additional confidence for the development plan of the Company's existing TE-5 Horst discovery, which remains subject to Final Investment Decision.

The latest pressure measurements reveal a current reservoir pressure of 413.4 bara at the TE-7 well location with the pressure continuing to increase towards the original reservoir pressure of 422.6 bara confirmed by the Company on 19 July 2017. The period of pressure monitoring has been extended to observe this continued pressure increase and will continue. The pressure build-up trend is important information as it allows the Company to estimate the connected volume of in place gas ("GOIP") accessible by the TE-7 well.

Analysis of the pressures measured in the well recorded over time has led to an increase in the Company's estimate of connected GOIP around TE-7 to a volume exceeding 115 Bscf. Historical analysis of the pressure trend, announced on 19 July 2017, had previously shown that the volume of connected GOIP around TE-7 exceeded 40 Bscf.

The significant increase in the Company's estimates of minimum GOIP connected to the TE-7 well provides support for the Company's field development plan consisting of a number of horizontal stimulated production wells spaced to optimise recovery.'

Just that one well provides 20% of the GOIP on the development. That will provide a material uplift to the NPV of the project. It's funny how you always miss that point? Maybe we'll end up with more for the Horst than the broker notes?

And frankly, I think those calculations are conservative. I think that stems from the production concession and of course the lack of data from previous production. Just look at the EWT- we worked on 40bcf per drill, but TE7 has already shown 3 times that.

It's very clear you get that part, but if you think a project at this stage of development is going to be significantly discounted, you are missing the point. Third party verification, EWTs, production concessions etc, blimey even an GSA offer. The calculations are an industry standard and it is accepted that the NPVs calculated are what should happen. Reality may differ, but that is the risk a buyer of these developments take. As I say, you are trying to discount something that the O&G industry accept should happen under normal circumstances and hence don't discount.

'youtube.com/watch?v=ZjcBTWYBJo4

40:30 to 45:00'

I had a good chat with John about Ophir. Never underestimate the value of having worked on the other side of a transaction.