Member Info for Soundingoff

Tapper- To be clear my offer example was my own and not anything offered by the BOD.

I could imagine a few reasons why the BOD and key employees couldn't buy now. Essentially it's anything that could materially affect the SP but doesn't require an RNS as it is still in progress.

- Informal offers
- GSA discussions. If the BOD had a strong view we could achieve $9 versus $7 or $8, then they have insider information that could materially affect the SP. However until the discussions are concluded, the information cannot be released to the market
- Sidi- Even initial negotiations would be enough to stop them
- Luca's baby and consolidation
- etc

Having had the discussion with the BOD, we are now in a period where the BOD and key employees cannot trade shares of their own volition. Hence JP's trading plan which utilises rules and a trustee.

As an example, the Board may have had an informal offer for the company (valuing the business above the current SP). This does not need to be released to the market. Therefore a member of the BOD or key employees may want to purchase shares to take advantage of this information, but they cannot as it's insider trading.

Thanks for the detailed posts Fellrunner, it'll be very useful to refer back to. I held back on the note taking as I knew there'd be a surplus there.

I think the GSA is a divisive topic. Whilst initially concerned about the timing, I'm more relaxed now given the geopolitical/geographical and general gas trends. I do also wonder how this will tie in with potential further discoveries and this may be holding us up. However no-one can argue with it being a potential concern.

A few of us had a good chat with Tim, Roger and Danielle in the pub after the event. There were some interesting comments, but you really understand the effort that has gone into it. They are essentially in contact with Schlum 24/7 on this, and as you say, it is a real positive for me too.

I also noted Roger's use of language. However following up with him, he's clearly very passionate about this area and it's a speciality of his. Of course there is some art involved with this modelling, but it's clear to me he's very focused on the job at hand and very aware of what this means for Sound.

It would have been useful to give a quick bio for each of the speakers prior to their section, as their list of previous experience is impressive. Roger rattled through his list and the additional information he could add to that, as opposed to just (yes I know) the seismic was really interesting. I like the fact they are not just geo guys, they all have so much experience, I think we are chronically overstaffed in experience and ability. Not man hours though...

There are plenty up for a good discussion, but it's very easy for people to become defensive depending on how the points are made.

You’ve reminded me of something 250. I confirmed with the geo boys that it would be wrong to call our drilling wildcat, based on any definition available.

You have forgotten the tax on exercising the shares, which is £140k. So there is no cash benefit, only an increase in shares.

Yes, interestingly he isn’t derisking at this point. Unless he does it leading up to spud/during drilling.

JP has taken up his options and sold enough to cover the tax and purchase. Interestingly he has chosen to hold more shares now rather than selling all options.

You too table. GSA has been delayed/deferred for a reason, but unusually when negotiating with a larger entity/country, we have the upper hand here. Morocco need the gas and ties with Algeria are not their preference.

I can’t think of much to add that hasn’t been said already. It was very useful to understand how everything fits together in terms of the model, ftg, seismic and drilling. The Palaeozoic continues to be opened up and the geo guys expect to be done processing by Christmas.

They are trying to find every extra bit of reassurance they can, and have a number of mini projects that they’re working on to aid this.

TE9 & 10 will target the Palaeozoic.

John Argent said he definitely feels we have time (with our imposed limits) to do the field justice.

Good to meet some new faces as well.

I think you’re setting the tone for your report early on Fellrunner. Take this event for what it is, access to privileged high level data from well respected geologists.

Ignoring the guff ;) , JP said he'd be there tomorrow when I asked him at Durham.

SDX may well be able to 'work' this asset better than BP, but my choice wouldn't have been to get more involved in Egypt. It will dilute the ability for other deals/discoveries to be able to materially affect the SP, so SDX may mature into a different type of investment.

PW has done his best work in these circumstances, so it'll be interesting to see what happens.

Just a quick calculation, but if my maths is correct, our production concession of 60m cubic feet per day covers the 'payment' in gas for the pipeline and adds another 20% on top...

It's fairly obvious we're going at the pace we want to, not the pace we could. No idea why, but we'll be probably be spudding soon.

If TE9, 10 and 11 don't deliver, then I'd agree with you...

It has been confirmed that we will test each well (if appropriate) before drilling the next, as we want as much data as possible.

Trading suspension...

When you are talking about offers of (hopefully) billions, spending a few million or ten on analysis is nothing and pays for itself many times over. I wouldn't worry about time constraints, they usually don't apply in these situations. As an example, US companies are well known for working 24/7 (actually, not figuratively) once they are getting close to a workable deal. They would look at every piece of data available and ask for as much again before making any offer.

Though the best type of situation to be in (a bidding war), can alter things somewhat.

Indeed. The aerial grad and seismic is done and being processed, leading to an inventory of prospects.

On top of this we are moving onto the chemical analysis.

After a very very long wait, we have the possibility of 4 drills. IF TE9 is successful, we are in a very strong position IMO.

Sorry I meant the grad/seismic data. The info we had at Durham re the 'Veyron Zone' and the way the gas had migrated there was very interesting. They'd only had the data 3 weeks, so another 5 week on top of that and we should have a much better picture of what happened there.