Member Info for Soundingoff

Major shareholders not shareholders.

We went for high risk/high reward testpack, and we didn't have the downside risk covered. But that is history.

Thanks for the figures, and also Exploration for posting his summary of the lower risk potential. Personally we have to wait to find out the terms of the JV and I then expect to get detailed analysis of why we are taking this route. I'm also not sure why people think this route is of JP's making? Things have moved on (the Chair for example), and our shareholders will have made their opinions known.

No one want to see us argue trellis, so my last point. It usually went like this:

Me: Figures etc xyz
You: Failed drills, SP at 7p, wine, nurses

Those are not contrary views, they are pointless. I asked for your views and you had none.

Good luck in your future investments.

I simply said that you stifled debate trellis, nothing more, nothing less.

That's not quite how it is trellis. My views on our exploration potential being worth an undisclosed sum were wrong. My views on our NPV and other matters still stand. I have never discussed what we could have got in a deal, only what our NPV could be. They were based on a Buyer having confidence in those calculations, which clearly they did not. Exploration is not worth what some of us expected.

This deal moving forward is clearly Plan B. We'll never know what Plan A could have yielded unless Plan B flushes out higher bids. Unlikely I think.

Until we have a breakdown of the deal, shareholders locked in at higher share prices will have to wait and see what it means for them.

However I have to say, you and your ilk have to shoulder some of the blame here. The persistent negativity stifled debate. I'm sure there were many who could have dug deeper into our position leading up to this who did not due to pathetic commentary and off topic nonsense. Not one of you bar Wh0s had anything of use to contribute. Just many millions of wasted pixels.

That could be what the 9% is for wh0s, along with an incentive to drill. As they say, the devil is in the detail, so we may have to wait until Valentines Day. What a strange date.

Unless it is just sold entirely, with/without some sort of contingency agreement.

I agree Prudent. Unfortunately we have value of the deal, but much of the real detail will have to wait. Clearly (non) operating costs against the NPV of the remaining development are important, along with the extent of the exploration available within the free carry. By definition Sidi has to be another JV, mirroring Tendrara, unless we are to be issued shares in a Newco. Given the costs required in Sidi, the JV route seems most likely.

The only positive on the 9% is it's a pretty big incentive to get exploration underway quickly.

Hold up n4a, our agreement was for the sale of Eastern Morocco, not a discounted JV, free ride on production and more exploration... Don't worry our agreement still stands and of course your charity will be getting a donation if we don't hit with the drill bit and fade away into dull production. To be honest, I'll donate anyway if we do strike lucky on a new target.

After digesting today’s RNS, I accept the JV on the Horst, despite the discount. On that basis, I’d imagine the outlook on oil/gas pricing isn’t as optimistic (cue testpack) as we’d like or we've been screwed down so that we can go again on unlocking the basin. Either way, those with the view that exploration potential isn’t worth significant sums were right and TE9 and 10 were far more important than some of us realised. Of course we don’t know what we could have realised lock/stock and what internal/external pressure there was to continue drilling.

I’m not one to dwell and I really would recommend a few on here take a step back. I certainly will be, far too much time has been spent for not a lot of gain (tongue firmly in cheek).

We now need to understand where we stand with regard to our cash position, exploration drilling programme, Sidi and future leadership. There is still the opportunity for significant gains from here, so I hope we now focus on maximising what we have through balanced exploration.

That wasn't directed at you wh0s. I appreciate you've only attacked the figures not the people.

So we're looking at around a 30% discount to NAV. We've been left with just over 10p NAV in the Horst?

We need to know the exploration plan (presumably with the cash from the deal).

There's still opportunity to see some return, but expectations set the bar too high.

What's happening with Sidi?

'Actually only 55% is due upfront... so 23 million. Minus fees and expenses, pay off the bonds and there is literally *LITERALLY* zero cash left to distribute.

Deal. Of. The. Century.'

Indeed wh0s. I have said all along I would give the BOD the benefit of the doubt, and we now have the result. But short and sweet, to a large degree, yourself and the many other naysayers were correct. There was still no excuse for the vile behaviour though.

Based on other field sales, I'm very disappointed in the value retained and also the costs incurred. I'm not sure I believe the figures provided re our NPV.

Surely JP will be off now?

2018 accounts:

Loss of Office and Change of Control Provisions
In the event of a change of control of the Company, the CEO,
CFO and Exploration Director have the option to give notice
and receive a lump sum equivalent to 18 months’ salary for the
CEO, 12 months’ salary for the CFO and 8 months’ salary for
the Exploration Director.
All of the Company’s current share plans contain provisions
relating to a change of control. On a change of control,
outstanding awards would normally vest and become
exercisable, subject to the satisfaction of any performance
conditions at that time.

The law:

Change of Control Clause

Also known as change of control. A provision in an agreement giving a party certain rights (such as consent, payment or termination) in connection with a change in ownership or management of the other party to the agreement. Not all change of control provisions are triggered by the same action. For example, a change of control may be triggered by a sale of more than 50% of a party's stock, a sale of substantially all the assets of a party or a change in most of the board members of a party. For a standard change of control clause, see Standard Clause, Loan Agreement: Change of Control Event of Default.

Lovely work if you can get it.

We want to sell and so does JP. It'd take him close to a decade at his current salary to replace what he could if he sold for peanuts. You couldn't get more aligned.

Salary of £500K now vs shareholding is irrelevant. What's relevant is the selling price and his golden handshake. Quite clearly that is many times more attractive. Pretty simple really.

Yes I know, that's in my figures.

Don't forget the golden handshake. He can get paid to leave and paid to start at C4. Why on earth would you think he doesn't want to sell and move on!?

Have you not heard of C4? I'd imagine he already has something lined up. History will tell you the outcome of Sound won't really matter.

Moving forward his salary here is probably £500K. Almost half that net or £276K pa.

5.6m @ sale price less CGT is..? Even at NPV10 of the Horst, you're looking at close to £1m or 4x salary moving forward.

It's fairly obvious it's far better to move on.

Plus 3m options wh0s. Why would you not want to sell and move on if you can do the same again? Rinse and repeat.

'“The board have our best interests at heart”

You need help!'

JP has 5.6 million reasons to sell here. He can move into his new role at C4 etc to replace the monthly pay packet. Would you not agree his aims are aligned with ours?

The quotes come from this interview:

https://www.youtube.com/watch?time_continue=1&v=pRjmXIzeNso

'we're 4 days on after the date 6tcf mitchener stated a deal should be done by...and still no rns...no exclusivity agreement...nothing. which is just what our investments will be worth soon'

Come on n4a, as you say stick to the facts. The email purported to be from Brian advised that the deadline for offers was well before the 31st October. Not a deal.

As we are 'well after' the deadline for offers, the question to ask is are we working a deal or not? And if not, should the market be advised by now of 'no deal'?