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sammy- try and look at it a different way. Would Schlumberger (who are worth $87 billion) bother converting their synthetic shareholding if Eastern Morocco was only worth a few hundred million? I don’t see any reason why they would bother if that was so. They need their 27.5% to be worth billions to make just a small difference.

It's an interesting one. Clearly some believe £1 a share isn't possible without drilling, other much higher.

Based on the know facts, I would conservatively estimate our current risked value of Eastern Morocco, on an NPV10 basis at £4 per share.

This is on a mid case 30% success basis on TE9 (and analogous structures) to TE11, the TE5 concession at $8 per scuff, my own view on the NE Lakhbir and surrounding areas of TE5 (TE8 validation) adding 50p onto 50p for TE5, and the remaining TCFs from our mid case 20 TCF model valued at 5p in the £1 on a seismic basis (JP advised 5-10% of value on seismic).

My view is this valuation could considerably undervalue the seismic, but it's just there to validate my investment.

Drop the NPV10 to NPV8 and that would rise to £5 per share.

The question is, are there any buyers who are willing to buy on a risked basis? And what risk rate would they apply? We also have to be aware that a successful TE9 does not just validate TE9 and the analogous structures. Values would rise across the board.

It must be made very clear, that this pretty much ignores the Palaeozoic based on conventional thinking. We simply do not know where our internal (and possibly data room) estimates lie.

Successful production test at SD-3X well, Egypt

SDX Energy Inc. (TSXV, AIM: SDX), the North Africa focused oil and gas company, is pleased to announce that a successful production test has been conducted at its SD-3X appraisal well at South Disouq, Egypt (SDX 55% working interest and operator).

The well flowed at a maximum rate of 16.1 MMscfd of conventional natural gas during an eight hour clean up period and was then shut in for eight hours, during which time no pressure decline was observed. Following this, by varying choke sizes, the well was flowed for two successive six-hour periods at average rates of 5.3 MMscfd and 8.4 MMscfd respectively and one extended flow period of 12-hours at an average rate of 10.5 MMscfd.

The SD-3X well was subsequently shut in for a pressure build-up of 96 hours, which is currently on-going. At completion of the build-up, the downhole pressure gauges will be retrieved and the well suspended prior to being connected to the local production facilities. During testing a total of 12.02 MMscf of conventional natural gas was produced.

Paul Welch, President and CEO of SDX, commented:

"We are very pleased with the test results of the SD-3X well as it exceeded our expectations. The well is located the furthest down dip on the structure and had the least amount of pay when compared to the two offset wells. We therefore limited both the test duration and peak rates to ensure that no damage was done to the well whilst testing it. The well performed in line with the offsets even with the reduced pay section. We are now very confident that we can achieve the peak rates at the planned facility at South Disouq of 60MMscfd of conventional natural gas with our current well stock. We intend to connect this well to infrastructure located adjacent to our SD-1X discovery over the coming months. We are targeting a late Q4 2018 start-up of production in South Disouq.

The rest of our portfolio of assets continues to perform well and I look forward to updating our shareholders on all of our activity when we release our Q2 results on August 28, 2018."

I'm still pondering who gave us $15m in exchange for a number of shares that were a gnat's whisker under the reportable threshold. A new shareholder by definition and either an institution, a potential suitor, Schlumberger or just someone out to make a quick buck pre-spud?

And that late baby.

We definitely have the ingredients for a good mystery...

We do have the A structure CPR which is outside TE 5-7. But as you say, most of it is a mystery to us. On purpose would be my guess, and given we have just had an updated basin study increasing the potential I am still happy to be kept in the dark given our stated aim of the sale of the company.

Some news would be lovely if you're reading though JP.

If the Mengo is confirmed, we'll be well beyond 15p. The npv of the Mengo (mid case) is around £50m or 30p per share.

That is my understanding too 250. They have a good idea of what the data holds very quickly. It's the extra detailed work that takes time.

As you say Fellrunner, it's old news and frankly for good reason. Why tie a buyer to our investment decision? GSA is quite clearly key, but since the start of this year we have been told when to expect it, and that window is still open.

What matters now is that we appear to be moving on with our aim of drilling TE9, TE10 and TE11. If we take into account there are 5+ analogous structures on TE9 and we are expecting a larger drill target on TE11 than TE10, then OUR share of targeted proven/derisked gas at $8 per scuff is almost 80% (in gas value terms) of the ENTIRE Zohr gas field in Egypt (No. 20 on the list of largest gas fields). That is just these three drills, on a mid case basis and ignores the palaeozoic on TE9 and TE10. Of course there are also the onshore vs offshore considerations. as ever this is not a direct comparison of value/profit from the projects, but gives an idea of the scale of what we are aiming for here.

On top of this, Sound have other drill targets and the all-important seismic.

Whilst not a direct comparison given the stage of development, consider than Mubadala Petroleum bought just 10% of Zohr for $934m quite recently, with significant development costs to add on top.

Forget about next year, TE9 is this year. Rodney will definitely be happy.

Looking forward to the event davey. See you there.

At the Bristol event back in April, I was told the COS components of TE9 looked very good. The only question mark was charge. Have a look how many times 'charge' is noted in the Updated Basin Model RNS at the end of June...

Nothing in life is certain, but I too am very happy with our chances.

I'm only going for the buffet, let's hope they have chicken dippers.

Joking aside, I've found Brian, John and Jason to be very good at getting across the technical aspects in layman's terms.

Quality is fine now. It could have just been the Youtube upload. If it hasn't finished processing, the quality can suffer?

Table- This is what I posted a while back:

Under the rules of the trading plan, JP can have no more input into the timing or amount of the transactions. He has given a set of predetermined criteria/rules to the trustees of the plan, which could include amounts, dates, price, SP drops, SP increases, newsflow etc. He may have provided rules such as:

If we hit 70p, sell 500K of shares if we have not spudded TE9.
If we hit 70p, sell 250K of shares if we have spudded TE9.
If we hit 70p, sell 500K of shares if we have not spudded TE9 and there is no offer on the table in excess of 70p
If the options are exercisable etc etc

Of course we may never see the plan enacted as it may contain criteria that is not hit.

Each transaction, whether 1 share or 1m will have to be notified to the market. If there are multiple transactions over one day, then they would be communicated via one RNS.

Indeed Andy. We also have the recent placing. Who took those shares? Even if they were/are going to flip them, they would have to be confident of a near term rise.

It depends how advanced the deal is Soundtrader. A fair estimate would be around 4 months, but it's very hard to say depending on the deal.

Though you would have the choice to sell immediately at a discount of a few percent to the market.The advantage is you have the cash to invest immediately, but to counteract it, you could lose out on a better offer from another bidder.

Fellrunner- I’ll give you the benefit of the doubt here, given your previous antics. I can understand some getting nervous, but right now, I do not.

As you agreed with me last year, you didn’t expect to be drilling until this summer and here we are in the summer, starting ground works. On this basis we should see a drill in September. So I think we’d agree we’re a few weeks late ;) It’s clear (to me) this is being stretched out so that the seismic is finished, or something else is completed first (GSA, consolidation, sale etc).

As noted above, one of the key drivers for value (per JP) has been continuing at pace. The physical collection of seismic has almost ended and will be processed. As the company has already admitted, it’s taken longer than expected.

Our basin model has been updated and will continue to do so.

The GSA is still (just about) on schedule. If we get into September, then I’d like to know why and be updated. Otherwise, we’re still waiting.

Sidi is being farmed out and there are multiple companies interested.

We are not talking about a one-off drill of a few TCF here. If it was, I’m sure we wouldn’t have accepted the delays. However if we are invested here, we surely must believe that Eastern Morocco is much more than that and with it brings serious complexity on many levels.

Finally Schlumberger has just converted their synthetic shareholding to a full working partnership. This is huge for me, and a complete validation of the seismic and drilling prospects. I always felt it was strange that Schlumberger would follow us and sell. Maybe they weren’t sure, but they are now in my view. They are the world leaders in extracting from this geology and know better than anyone else what they have here.

I think they do have relevance Neptunes, but we'll see.

Finally Echo is good example that seismic is most certainly NOT the best case scenario ;)

There were 19 days between commencement of civil works and rig mobilisation on TE8.

TE9- 14 days and counting.

The LNG project has been put back to at least 2025/26 due to Sound's gas finds. It won't take much more to shelve it completely I'd imagine.

JP said months ago that the aim was to complete by the end of July, but if it takes a few weeks longer, then so be it. He also said that the date of completion wasn't the important bit, but the price we agree. So as we have been for some time, we sit and wait.