Member Info for Soundingoff

The 181k was an A trade. A buyer asked to buy 181k at that price and someone sold. I didn't see the order book at that time, so hard to comment on the other.

'The disappointment of what the asset is probably not, is more important than what it actually is seemingly according to the market. '

Spot on WoundLick.

And personally, an opportunity I'm lucky to be able to take advantage of.

I’m loving the ironic use of the word clueless further down.

A real possibility but JP is also on record saying that any buyer wouldn’t want the competition of Sound continuing. It could also be a vehicle (Newco) for a contingency deal/Sidi partnership.

They must be bored Longwait. They're hanging around until they can find an almost complete development project with significant geographical, political and fiscal advantages. They probably also want a huge chunk of exploration with a lot of the legwork already done. One day they'll find it, but it Sounds a big ask.

Despite what the idiots tried to tell us, there was always going to be significant interest in the licence. How that translates into bids/offers is a different matter.

Using methodology from other companies/broker notes, I calculate a risked NAV of more than £1, but being any more accurate isn't possible without sight of the inventory. The reality of any bids is a different matter.

I'm assuming the 31/10 date is a reference to Brexit? I expect news within a month or so now, but we'll see.

Agreed z-cars. One of the few upsides from the Brexit debacle could be the weakness of the £.

A reasoned argument from the more negative posters, Ponkey? That's as likely as a TE-X drill keeping to schedule...

I'm afraid this is more information you have missed in your research wh0s. Sound certainly haven't suggested these failures have had no impact on our basin study. Furthermore I'd suggest you compare their statements with those from other businesses and their independent studies. This will allow you to question further.

Do I? That's news to me. We've already been advised of the effect that the dusters have had on the COS of the basin model though haven't we? This really isn't about guesswork.

'I said for a while, I'm still here because I think there's a good chance we're worth more than 9p, it's that simple.... I can see someone paying 15-20p for TE-5 and a couple of pennies for the exploration - or even better a few more pennies in contingent payments upon success.'

If you believe the rest of the exploration/appraisal is worth so little I would genuinely suggest you review other broker notes on the valuation of our potential.

No wh0s, higher end as in value. A 99% would of course be plain silly. A quick review of broker notes on other companies will tell you that.

'Because the two most prospective plays across the entire license were dry/non-commercial.'

The two most prospective EXPLORATION plays. It's clear right now, that we have to separate appraisal from exploration.

'What discount do you think potential buyers would place on their guesstimates, given their track records? 90%? 99%?'

That's interesting wh0s, so your higher end estimate would suggest we have a value north of £1 per share?

We have almost all the components needed to calculate the NPV10 calculation anyway. The missing variables work in a range and therefore it's not rocket science to work out your own NPV10. Whether this or that hasn't been published doesn't really matter when you can work the calculations yourself.

Except we have no line of sight on the 9-11p target notes. What do they say?

The research notes published are calculated using industry standard NPV10 valuations. They are paid for, but they are the reality of the Horst. Recent sales of similar developments show they sell at a very small discount from NPV10.

Oh Shaun, you are a **** but you do make me laugh at times. In between all these one post wonders and ignorami. I trust no offence is taken.

To be clear ddboy, there is an offer deadline in place, but it isn't public knowledge.

Takushi ****e kudasai

'When we are told of the offer price, it may be too late. I believe when (if) a RNS is released, it will be a 'recommended' offer. Before The Failure released the RNS he would have got OGIF and II's 'on board'., and we all know how apathetic PI's are about voting, even on important decisions. '

You are right. However I'm confident they know the value of our assets and can strategically assess the best way forward.

'Valuing The Horst at c15p, and other assets, at the difference.'

The Horst is worth considerably more than this, close to double on an NPV10 basis. Recent sales of similar developments make it clear we would achieve close to NPV10.

'I see as anything below a quid per share as a failure.'

Frankly so do I, and have done the calculations to back this up based on broker valuations.

I'm not sure why SCHL is seen as a red flag. O&G is well know for bringing many different partners together on projects.

'you would accept this, and I'm assuming this would be at a cash loss to you. Would you not be prepared to wait and have further drilling done in all areas, led by a more competent leader, and def. an OnG person, say a minimum of 6 drills. IF 2 or 3 are successful we know what that will do to the sp. It is the prime objective of a CEO to maximise SH value, not for the few who may still have averages below current sp ( only newbies I would suggest), but for the many. With the License Area we have, and the taxation benefits, I do not believe 35p accurately assesses the POTENTIAL. '

Of course you can only make that decision when you know what the alternative is and the value:

- Sell the company
- Sell Eastern Morocco
- Sell the Horst
- Is there contingency
- Etc

Without knowing the offer price, it's impossible to make that decision.

If the course of action you describe will unlock our potential, then a Buyer would know that too. Indeed we have drill-ready targets identified. And then the only salient question is what would someone offer us for that potential? And no, the answer isn't zero unless you choose not to research the valuation criteria and marketplace at this current time. You then have to weigh up potential success of some drills vs receiving value for all drills at a lower percentage.

Below is a document which explains how this can be achieved. Pages 14 and 15 provide a good summary.

https://higherlogicdownload.s3.amazonaws.com/SPE/5fc0079d-67a5-4dd9-a56f-190534ef5d3d/UploadedImages/oct%204%20presentation.pdf