Member Info for Soundingoff

Shaun is correct jack. Any offer for the sale of assets would indicate how much is to be returned to shareholders via a dividend or return of capital and how much is to be withheld for other purposes. Therefore this will provide a guide for the share price.

I most definitely am not n4a and there's plenty here who can attest to that. I just read, listen, consider the facts at hand, research and post my views.

Testpack- The AGM attendees were advised as such. JJ posted on the last FSC that the 'marketing' process was data room>management presentation>bids. You can draw your own conclusions from that.

The market appeared to know the price on Friday but unfortunately (or fortunately depending on how you look at it) the deal hasn't been recommended. It'll be interesting to see how it progresses. That's the issue with unsolicited offers though, it can create a false market. Better to set your stall out early on and control the process.

We've made presentations wh0s, so there clearly are interested parties. Interested enough to make an acceptable offer is of course a different matter.

I'm afraid many are blind to strategy here Longwait. They only see sell/don't sell and keep on drilling, rather than a number of other options available given we have a concession ready to develop. That's why they're here and not making deals.

'But I cannot abide people posting stuff on here that is not true, when the facts are there and available for all to see.'

I agree wh0s.

Regarding confirmation bias, you do realise that partridge really isn't pro-Sound!

As I say, you may be right. But you make all these statements as fact, when they are far from being so.

I'm sure we can agree, that at least a chunk of that cash has been spent on PIs. Sound's buffet spreads are fantastic.

Correct that could be the case. But now I would go back and reconcile your statement to the increase in II involvement on the register and let me know what you find.

I'm open to whatever the reality is. When was our last PI placement?

That's quite a sweeping statement wh0s and of course complete conjecture. We don't know which institutions hold our shares do we?

'I think one look at their collective bank accounts and they'll be pretty chuffed that they embraced PI's. II's are less inclined pay you millions of quid a year to continuous failures.'

Surely it's the exact opposite? Institutions are the ones who have picked up the tab (literally) via the placings. Ignoring dilution of course.

It states they have decided to convert partridge. Anoual has converted, but the concession hasn't yet.

Schlum hold their share of everything separately except for the Horst where they still have a synthetic interest. If we sell the Horst, they sell the Horst. That's not to say that any deal couldn't unwind this though.

'Strictly speaking no GSA means the project is not bankable. That’s not to say TE-5 gas field is worthless, but its current value is reduced without a GSA.'

Exploration- I'm afraid that's not reality. Look at Rovuma and Zohr in terms of GSA agreement. Plenty of projects don't have GSAs settled until many years after they change hands. We also have a GSA offer, so the point is moot quite frankly.

Agreed KTF. It really does boil down to the risk a potential buyer would want to apply to the inventory.

Scarf- I've tried to calculate the figures below with reference to O&G methodology. As to how value will play out, I have my own views with reference to what I've calculated. That's the best any of us can do and only the Sound team, Rothschild and potential suitors know any more.

'SO- you are suggesting that we take the valuation of a survey commissioned and paid for by Sound ( nothing like a independent CPR by the way) which stated Te5 was worth between 22 and 27p per share(the actual figures released) and because even the top end of that estimate doesn't seem high enough to support your incessant ramping we should start adding random extra value to it?
back to the bloody wine'

trellis- This is getting tedious. We've already discussed the NPV calculations previously. These are industry standard assessments. Sound have (or at least had) a full time modeler on the team. If you think they're just going to make up these relatively simple calculations (for them) then you are more alcohol addled than I thought.

My view is these figures are now 'light' because of changes to the Horst productivity. If you understand anything about the NPV calculations, you will understand why I make this point.

Rather than resorting to insults, I would spend the time on some basic skills applicable to the industry you are invested in.

If anyone is interested in the valuation methods, this presentation has some information to help understand the methodology used in O&G:

(Yes the link it ok to download...)

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

Page 14 and 15 are interesting. Well, at least they are to me...

I've seen the reference to 19p some way back, so I don't think it's the Edison Report.

Broker notes broadly use the same methodology, so I believe the report would show a NAV significantly higher that where we currently stand. From my research, I would calculate a NAV of at least £1 based on the basin study, drill prospects and advised TAGI risk of 20-30% COS. Without knowing the inventory, it's hard to go any further. Maybe they didn't release it because there is no guarantee that NAV translates into sale price.

We can, although from my own calculations and the ones I've seen from others, only the higher end is representative. It was quite a nice surprise (given the recent disappointments) that TE7 is 3 time+ more productive than originally modeled.

$360m per the Progressive report Longwait, which equates to around that. I find that figure quite conservative. Even our gone (but not forgotten) Fellrunner valued the Horst above that.

Maldini- The NPV10 calculation is unrisked. It provides a return on investment of 10% over the expected period of the investment. As noted below, a small discount may be relevant given the circumstances. Although I have reviewed sales where they have sold at or above NPV10 at an earlier stage of development than our Horst. However all these calculations are based on industry estimates and other parties may agree or disagree with these estimates. Given the latest updates on TE7 it would appear (IMO) our valuation is conservative to meet the requirements of the concession of 60mmscf:

https://www.lse.co.uk/rns/SOU/sound-energy-plc-eastern-morocco-award-of-production-concession-67llwz58ttikj31.html