Member Info for Soundingoff

'I cannot point to a single success since Te7, and that was sometime ago now...'

Usually small cap O&G companies can only rely on binary drills to advance the company. Clearly we wanted and needed this too. However, despite what some on here say (repeatedly), Sound have moved themselves and Morocco forward in terms of energy independence (TE5 Horst development, seismic/grad programme etc). Success doesn't always slap you in the face.

'Shaun, if you don't think that potential buyers will be referencing the SP in their negotiations u are mistaken.
They will use this as leverage.'

This could be true if we have very little interest in bidding. Those engaged in the process will know there are multiple interested parties but may or may not know if they are going to bid. If we have multiple bidders then their offers will need to focus on our development and exploration assets in their bid. Of course they will also apply some discount for the fact we are running out of time/money. However, given the makeup of our shareholders, the advice given to us by JP and the net cost to shareholders of their shares, bidders will realise it would be a very dangerous game trying to reference the SP. AIMO of course before the shouters pipe up.

We must not forget that most companies that are bid for are valued close to NPV, usually based on earnings, DCF etc. Many also hold additional value in their MCap for potential based on sales targets, new markets etc. Here it's much easier for shareholders to reference this, but for good or bad, Sound have chosen not to provide us with this information. Using broker calculations, I estimate our risked NPV north of £1. These are the reference points for any buyer, but with these situations anything can happen and nothing can be discounted.

'Additionally we raised funds near this value, which was a shockingly poor piece of planning by the mgmt team when they could have raised for 20p a few months before that.'

This is a well used tactic to show funds can be raised easily if need be.

And of course vice versa in regard to buying/not buying. Everyone has to make a decision based on all available information. Just relying on the SP is rather naive given the historical evidence.

It's very easy to call something nonsense when you don't understand it.

ALGO trading has nothing to do with drilling, the core value of the business etc. What is does have an effect on is the buying/selling of shares etc. It's a really simple concept to get your head round if you try.

'The question still remains, if the expectation is many multiples from here, then why have individuals or indeed financial institutions with their vast resources and knowledge of the sector not piled in?'

Indeed it does. Like the many who have asked the question before on other shares. They didn't get their question answered and lost out on the eventual sale.

There's no conspiracy theory jack, it's just the way it is now with shares. Ignore it at your peril as it can sometimes indicate what is going on behind the scenes. As you say, all that matters is whether we can get a deal and at what price.

Evening Table. Without a shadow of a doubt the SP is being manipulated outside of normal PI/L2 trading. What the outcome/aim is, is harder to say. We saw this when IIs increased their holdings by 40m plus shares. IIs held their holding from the figures we saw in July, but obviously we have no update scheduled until October.

Please accept my humble apologies trellis, I did not realise this was the totalitarian state of trellis. I thought, mistakenly, that you could discuss the ways and means of selling/purchasing investments on an investment forum. What a fool.

In the future I will only post pointless inane Walter Mitty style posts whining about wine and women. I will make my fellow citizens feel grateful they are not so miserable.

For you information, I have just decanted a fabulous 2019 Severn Trent to go with my Moroccan humous. I hope later my 18th partner, Hugo, will help clean me up.

Hopefully when I post this, the formatting won't be lost. If you look at the series below, an assumed PI sell triggers what are effectively buys on L2 at the bid price. If the broker were to take the shares off the PI and then sell via L2, fulfilling an order, then this would make sense. The A trades today are all Algorithm trades.

16-Aug-19 13:43:36 7.70 50,000 Sell* 7.70 7.91 3,850 A
16-Aug-19 13:43:34 7.70 50,000 Sell* 7.70 7.91 3,850 A
16-Aug-19 13:43:33 7.70 50,000 Sell* 7.70 7.91 3,850 A
16-Aug-19 13:43:31 7.70 50,000 Sell* 7.70 7.91 3,850 A
16-Aug-19 13:43:29 7.70 50,000 Sell* 7.70 7.91 3,850 A
16-Aug-19 13:43:23 7.70 40,488 Sell* 7.70 7.91 3,118 A
16-Aug-19 13:43:04 7.60 246,325 Sell* 7.70 7.91 18.72k O

trellis- Using wh0s example, did you see what the SP did after ECO's CPR? It certainly didn't head north. It wouldn't make any difference to where we are now in terms of SP, so with hindsight it was probably the right decision, saving costs.

Care to discuss the pros and cons of your point properly, or would you rather continue to insult?

You need to put the right words on the page if you don't want me to comment wh0s. It's basic stuff.

'Show me an independently verified prospect inventory past those drilled at 9 and 10, if you can...'

It doesn't really matter what data we have does it wh0s? Those 10+ parties who have visited our data room and been presented to have the expertise to verify the prospect inventory. They hold the key, not you or I.

Despite your protestations, it's quite normal for data on highly prospective resources to be kept behind closed doors. Care to supply me with the data for Zohr or Rovuma?

RNS Number : 9793S
Sound Energy PLC
29 June 2018

29 June 2018



Sound Energy plc

("Sound Energy" or the "Company")



Eastern Morocco: New Basin Model Suggests Anoual Oil Play



Sound Energy, the Moroccan focused upstream gas company, is pleased to confirm that it has now finalised a new geochemical and Basin Modelling study (the "Basin Model") across its Tendrara-Lakbir, Matarka and Anoual permits, Eastern Morocco (the "Eastern Morocco Portfolio").



The key conclusions from the geochemical study and Basin Model are:



· Hydrocarbon charge across the Eastern Morocco Portfolio is predominantly generated from a carbonate rich marine source rock, interpreted as of Devonian age.



· The Basin Model predicts that there is sufficient gas charge available to fill the high graded TAGI leads and prospects.



· The prediction of a potentially significant oil play within the Palaeozoic on the Anoual permit area (in addition to the Paleozoic gas play already identified). Further 2D seismic data is currently being acquired and processed over this play fairway, which is being evaluated as a candidate for the planned third exploration well (TE-11).



The Basin Model also enables the Company to provide estimated volumes for the range of hydrocarbons available for migration into mapped prospects and leads across the Eastern Morocco Portfolio and is an update on the work undertaken in early 2017. Preliminary volume estimates resulting from a previous basin model were first announced by the Company on 1 February 2017.



Following receipt of the Basin Model, the Company is pleased to update the Company's internally estimated volumes for the exploration potential** of the Eastern Morocco Portfolio acreage, expressed as unrisked gross gas originally in place, of a low case of 7 Tcf, a mid-case of 20 Tcf and a high case of 34 Tcf. This range represents further support of the previous estimates announced on 1 February 2017.



The Company commissioned the Basin Model from the leading independent petroleum systems analysis consultancy, Integrated Geochemical Interpretation Ltd (IGI). IGI built the model to assess the overall basin potential, to provide further data to derisk specific prospects and to evaluate the range of parameters that control the magnitude, phase and timing of hydrocarbon generation, expulsion and migration across the Eastern Morocco Portfolio areas.



The Basin Model utilises horizons derived from the recently acquired Full Tensor Gravity gradiometry (FTG) survey and new calibration data from the TE-6, TE-7 and TE-8 wells. The FTG data has been processed and interpreted to produce a series of permit wide surfaces that have been used to define the extent of the potential Paleozoic basins, the source of the hydrocarbons. The Basin Model has allowed the Company to model in 3-dimensions the evolution of the petroleum system, and migration of the hydrocarbon

And here was me thinking the basin model was commissioned from a third party.

Oh look wh0s, you got it wrong again:

The Company commissioned the Basin Model from the leading independent petroleum systems analysis consultancy, Integrated Geochemical Interpretation Ltd (IGI). IGI built the model to assess the overall basin potential, to provide further data to derisk specific prospects and to evaluate the range of parameters that control the magnitude, phase and timing of hydrocarbon generation, expulsion and migration across the Eastern Morocco Portfolio areas.

I agree. The interview is interesting though, in terms of how he's looking at financing (and suggesting other are too?), moving away from dilution and looking for quick returns.

He failed completely with Cove too. Oh wait...

But I agree there is some irony there with Fastnet. The market has moved on since then though, with the move towards gas.

A very interesting summary on O&G for small players and financing. Thanks Ducati.

He suggests (paraphrasing) that 'monetising an asset in Morocco is easy'. Ex Fastnet and Cove Energy.

The drop was manufactured with ALGO trades, that's there plain as day. The only real relevant points are that the drop resulted in what appear to be broker PI sells. Where those sells go are another matter. The SP ended up where it started which was no surprise.

There's been some interesting trades over the last few days. The BOTS are in full swing.

Oh Shaun, the irony!

Having morals pays dividends wh0s, just not on the stock market.

That's of course a question of morality wh0s.

Surely the question you really need to ponder is whether OGIF, Schlumberger and ONHYM are happy for Sound to drag it out for no reason other than wages? I think ONHYM would prefer to see their Horst developed with the deadline looming. Therefore on balance I think you'd need to be a bit of a conspiracy theorist nutter to think dragging it out for wages is possible.