Member Info for Soundingoff

Not myself, but it's clear we do still have some communication given the posting of partridge and a few others. I was concerned it would be a complete shutdown.

Glad to see we still have some comms.

Interesting. So the wording of the email suggests it was one individual/organisation? And we will be able to see if those shares are traded/sold.

I think you need to look at SDX again Jones. Their strategy certainly isn't attractive to the market... AIM investors aren't interested in anything other than short term gain. We have seen a significant increase in II investment, but it is still very low in comparison to other companies. The differentiator is production.

Thanks for the analysis.

IIRC each SDX drill is £1m, and they are essentially chasing gas to top up each time. Very different from the Horst. They are also struggling with market uptake, although that was the information a while back. I sold out some time ago for a number of reasons and don't pay too much attention these days. Also IIRC Egypt take half the gas/oil and pay very low rates compared to others.

SDX have Edison research notes which are useful to understand the valuation criteria. As is normal for the market these days, they too are trading significantly below NPV.

Eric- That's a possibility, but so is raising cash to see us through to end of Q2. Or letting people in at mates rates. There doesn't need to be a conspiracy.

Wh0s- There was a reduction in Exec Director's pay of 29% IIRC from 1st Aug 19. I think I calculated that saved us £150K (woohoo) to year end. As I noted yesterday, we should be on around £2.5m cash burn for the next 6 months, but we don't know what severance package JJ/JP will get.

It's a fair question Eric. I think in the past Fellrunner pulled you up on your rapid changes of direction. When the deal was announced we were doomed to failure and you were telling everyone to get on board with Trellis. Then suddenly everything was going to be great and Trellis's group was the Devil's work. Once again, we are doomed to failure. One should be clear if they are motivated by trading.

I think you just need to read up on what a JV is testpack.

Wh0s-£1.5m gives us just over another 3 months of annualised Opex and interest payments at the reduced 2020 rates. I'm surprised our cash balance was that high but it's clearly a pointless number without current debtors/creditors. If we need to run to end of Q2 to sign the deal off then we probably would have needed more cash. So I'd just put it down to some mates rates shares unfortunately. Helped by TW of course.

Thanks partridge. Shame about the 7% dilution...

Actually the have a lot more cash than I expected Jez. I had them at £2.5-£3m at year end. Cash burn should be £2m per 6 months now plus interest payments. Though we don't know what creditors they have.

We've already seen it across a number of sectors John. Not my view personally but worthy of debate.

Far better than the drivel you and your friends spout.

'Sound has more cash than I expected and " following recent inbound interest in our Company " is an intriguing statement.'

Partridge- Are you thinking that given market strengthening due to the election result, that we may have received stronger offers?

As a side point, very annoyed with the planning (raise) here at this point.

That's incorrect testpack. We are entering into a JV if the deal goes ahead. We don't know the exact terms of the deal, but a JV will allow us to agree beforehand what to drill and under what terms. That's the whole point of a JV. To suggest otherwise is plain wrong.

Whilst referencing megaprojects, this is still a useful document:

https://www.ey.com/Publication/vwLUAssets/ey-joint-ventures-for-oil-and-gas-megaprojects/$File/ey-joint-ventures-for-oil-and-gas-megaprojects.pdf

Wh0s- We all know the minimum life of the field is 10 years. Expected life of the field is 15 years. This is standard field development stuff. The reality may be different +/-. And of course this ignores any further appraisal drilling in the area that may be undertaken.

SBK was revised and from memory, they estimated it is now 600-800bcf.

We're not talking globally though whos, we're talking about Morocco. The whole point is it is very material to them. We are yet to find out about the deal and exploration, but hopefully if we get to drill (as has been suggested by Sound), it will concentrate on lower risk targets (SBK) first that could uplift our reserves significantly.

'If you’re realistic we won’t drill until the deal is done and preparations are made. Past experience has proven things don’t happen over night (months) so it’s a 2020 drilling plan, 2021 bit hits the dirt. If it’s any earlier, bonus, but just can’t see it'

I would normally agree with you given past experience. However the 9% is a one year option. If the Buyers signs on the dotted line, I expect to be drilling asap. 2021 would be pointless if they want maximum return.

Yes I have no idea why this deal would go through. Our asset is Moroccan. Our main shareholder is the Oil and Gas Fund of Morocco with direct links to the King of Morocco and Moroccan banks.

https://www.africaintelligence.com/mce/business-circles/2017/02/02/royal-family-helps-seal-ogif-sound-energy-match,108209946-eve

For some reason Morocco really, really want the gas out the ground too.

Partridge- To answer your question, can I refer you to your own answer a few days ago ;)

I'm not too sure why you latest post completely contradicts your previous one partridge???