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Yes I see that now KTF.

Thanks for the explanation.

It puts £500,000 into Sound's bank account and that is good news.

Can that be why its been done, just to bolster the bank account short term while they wait for the Calvalley deal to be finalised?

If so, Sound has called in a big favour from someone.

Yes, when they were announced back in June, I assumed that they would only convert when the price had gone well above 2.25p, maybe by the end of the year. Perhaps they need the money back desperately and cannot wait, and intend to sell off the shares to realise cash, even though they get a lot less????

Go Gigure, as they say.

Maybe better to ask, What do you think that the company will have achieved by the end of the year?

There is always a big credibility gap in peoples thinking about the share price, but the agenda for the next 6 months is now pretty clear after this weeks presentations.

So, might it be beter for this Board to concentrate on the significant things that we expect to be achieved and possible timescales?

Hi Fernan, again thanks for the analysis, it does sound as if you may have something there.

For my understanding, how do you square your calculation of 10p ps with the following figures from the SP Angel Summary?

Phase 2b (uncontracted) Morocco 195.3 pre-FID 75.0% 25.3 6.4 6.5 75% 18.9 121.3 97.0 4.8

They end up with a risked value of 4.8pps but I can't quite appreciate where the differences are in your calculation.

Can you help?

Thanks for sharing this observation Fernan, you have a wonderful appreciation of the detail in the SP Angel report, well done.

Any feedback from anyone who attended the Stakeholder event?

Has that been holding back the SP?

Maybe now we will see the brakes come off and away we go.

Great to see that the business is now adequately funded going forward.

Phase 1 costs, including back costs of US$8 million and £4.0 million funding through the issue of senior unsecured convertible loan notes, should be enough to sustain until revenues start to flow from Phase 1,

Good news

Https://www.calvalleypetroleum.com/

Calvalley Petroleum (Cyprus) Ltd. is an international oil and gas company operating in the North Africa and Middle East region.

Calvalley has a consolidated working interest of 39.52 MM barrels of proven reserves (McDaniel & Associates, 2014), driven primarily by our largest current area of operation, Block 9 in the Republic of Yemen.

Calvalley is financed by a strong and experienced group of investors, who have made investment commitments to expand and optimise Calvalley’s long-term operations. Calvalley draws on a strong bank of experience in oil and gas, underpinned by financial stability from successful businesses across many sectors in the Middle East and beyond.

I would like your screen-shots to fire real bullets at some of these posters :)

RNS in the morning :)

Lets hope so KTF, this long wait is unnerving.

I can only comment from past experience, that complicated and involved agreements between multiple parties take an inordinate length of time to draft, edit, distribulte for review and correction, finalise and then lastly approve.

This deal will be no exception and has an additional complcation of translation.

Does this help cope with the wait?

Above 20p per share is all about the gas exploration potential. Sound has a 'significant multi-Tcf upside exploration potential at both Tendrara and Sidi Moktar, around previous gas discoveries'

In Tendrara, the SBK-1 Appraisal well has an estimated 50% COS. Gas was discovered here back in 2000.

Next comes the TE Horst prospect which has an even greater estimated gas potential. If Sound find gas at either of these drills, they can be relatively easily be tied in to our Phase 2 infrastructure.

Hopefully, we will get a farm out partner soon to exploit these opportunities, and see the SP start to move up strongly.

Yes, I agree KTF and Tincan, £370M market cap is very achievable.

A 20p share price should be justifiable on the basis of Phase 2 being in place. The DCF forecast cash flow alone points to a market cap of £400M+.

If a farm out partner is found and we have drilling success the market cap will be much higher, £800M perhaps.

Now 50p, that would be something.

The important stuff here is the Cash Flow statement and assessment of our ability to get by until Phase 2 finance is agreed.

Nothing new here as expected, cash position is steady for the time being.

It would be very timely though if Gary could collect on the ONHYM receivable of £2.1 million for ONHYM’s share of expenditure on the Tendrara Production Concession. News about that negociation would be nice.

Come on Gary, hurry hurry.

I wouldn't want to be out of this share at the weekend

Can AIM quoted companies hold their own shares in nominee accounts with Brokers and release them into the market when the time is right to raise funds?. This practise would get around the need to make a new equity issue to the market to raise funds?
I would appreciate knowing the answer to this question, as it occurs to me that these large chunks of shares may be coming from the one source.
Besides this 'conspiracy theory' explanation, what else can explain the utter lunacy of selling these shares at such low low prices when prospects are so bright?

That was a good interview, very positive and encouraging.
GL said that 'the tax settlement is helpful - any structuring that we want to do with an EPC contractor or partner can only be enhanced'. Meaning that the tax uncertainty was holding back negotiations and now that it has been resolved, progress towards making an appointment will be faster.
This is the really good news, because any real increase in the value of Sound will only happen when the exploration drilling programme is in place. And as we know, there is plenty of potential in our Tendrara concession.
Today we have seen 24 million shares change hands, indicating to me that there is plenty of interest in Sound. At the currect SP, Sound is valued at £36 million approx. This is a fraction of the value that can be achieved when all this potential comes together.

This does look good.
The removal of one of the drags on this share is a major plus.
However the really good news is imminent, now that this tax uncertainty has been removed.
When we receive Attijariwafa' s conditioned financing offer, we will see this share rise. That is what I am looking forward to, but todays news is a great sweetener.
Of course the Farm Out partner announcement will add spice as well