Member Info for testpack3

Micky1 posted this earlier, qoute;
o The FS, which confirmed a post-tax NPV8 of US$1.4bn and robust financials including over US$300m p.a. in EBITDA, provides the catalyst for engagement with various potential financing groups to commence detailed due diligence'
On a PE of 15:1 this gives MC of $4.5B, and using present shares in issue, gives sp of £5.53. If we assume all finance required, $300M, is raised by share issue ( not realistic), then to raise $300M would require the issue of 4.8B shares @ 5p each,, totalling 5.45B in issue, giving sp on the metrics above of 83p per share. or a 1660% increase from todays sp. This proves that I have too much time on my hands. but there is the prize for the patient.

I can't remember ever agreeing with TLeg, but Trellis, he's spot on with you now. SAG needs a person upfront who can ask the right questions of the BOD, and attempt some accountability. Trellis, your recent comments make you out as bitter and sceptical. It's time for you to go and perhaps 'set up' with The Chuckle Bros. There's nothing wrong with optimism, and the new BOD have a plan, and the CEO is on record saying he is 'anti- share dilution'. The sp is a penny share. We all know it's there for a reason. Many on here, including me, have repeatedly said it's going to be a long , hard, rocky road. But the plan is to get to 1st gas, LPG plant, part financed, operating 2nd Half 2021, generate income, and then start gas exploration again with an OnG man at the helm. You seemed to deride my last comment, which I have used many times. I have for the past 6 years, stated many times hat an exploration company needs an engineer at the helm not a bean counter. I cant ever remember you, and any others btw, agreeing with that. It is now plainly obvious which strategy is best. Only time will tell if we have the 'right' engineer. Are you sure you have the 'right' strategy. Unless you change, I believe you should relinquish you honorary post.

I wrote the other day that successive UK Govts., starting in the main, with Thatcher, have an appalling record in investment in new technology. They would prefer to 'buy in'. eg. Huwei and 5G, NUclear Power, and countless others. This argument is reinforced by the unbelievable decision not to have the wearing of face masks compulsory from day 1 of the CV19 outbreak. S Korea has less than 1K deaths, we are closing in on 50K. The reason is that compulsory wearing would have caused massive shortages for front-line workers. This Country, which started the Industrial Revolution, and invented the weaving mill, has not got the business acumen to get simple woven materials made in the millions, and still havn't. Disgraceful. We are becoming a 3rd World Country. BTW. I do as I preach. I live abroad.

Oh what a joy to have an OnG man at the helm rather than an egotistical bean counter.

Wolveshaveeyes.
Nuclear Energy still has a place in Society. At Hinkley Point in Somerset, The old reactors, A & B were Magnox reactors, built and operated by Brit, Companies. and B is still operational. EDF ( France) and CGN ( China) are contracted to build and operate C, a European Pressurised Reactor, (EPR). Both Magnox and EPR have excellent safety records. It is a legacy of all nuclear countries that not enough energy ( exc, the pun) was devoted to de-commissioning of these plants. All of the 'accidents' as far as I am aware were man made.
Yes, The plants to build have a C footprint, but so do every other 'green' plant. Nuclear, somewhat larger than others, but has a massive generation output. Energy supply from H2 is important, but will always be a much smaller scale than Nuclear. I believe the market for H2 will be in transportation, primarily for FC in HGV's, vans, trains, ships and even aircraft. An injection of 5%H2 in the National Gas grid will save millions of tonnes of C. Also as a Energy Storage, and small scale energy generation.

It will be interesting to see how The Govt. play the H2 card. To lead or be led. BoJo has proved himself to be totally out of his depth tackling CV19. He must have attributes somewhere?

Bad loss to the Arsenal Wolveshaveeyes.?

I very much hope that The Govt. will prioritise H2 as a fuel to meet Paris Accord and drastically reduce C emissions. I know Eu will take a lead in this. Although I voted for M Thatcher, she was responsible, with her Hayek, Friedman monetary policies, with inflation at the core, which severely cut , both employment, and Industries. The legacy is still here. There was a saying ' that if it ain't made in Birmingham, it ain't made anywhere'. Those days are long gone. We were pioneering Nuclear Power Stations, Nuclear Subs, and now, The French not only own our Nuclear capabilities, it runs them and builds them. Unbelievable and disgraceful. BoJo is a Thatcherite, and will need a kick up the arris to get him on board. As per usual, Deutschland will lead the way. We need to press MP's, on the importance.

BB has been around for some time, and reminds me of Soundboy. Whatever happened to him.? No replies please, not interested. He was buying, with his wife, 50K lots when the sp was N of 50p. His fav, comments were 1) Big buy today, somebody knows something, 2) going to be a blue day today.. I'm glad he's not here anymore, simply because of the stupid post that something big was going to happen to SOU on such and such a date. he ramped on about this for months. In the end, it was his daughters wedding day. The complete idiot. Im sure BB is not in that class, although I suspect he'll have to buy loads under 1p to get his new buying av, down. lol. GL BB

I have lost count of the number of times I mailed The Failure re; SM, and the non-activity with so many 'interested parties', to receive the standard reply of /'can't comment while negotiations are ongoing. I believe Exploration, or possibly GRH, posted something to the effect that there was little chance of commercial gas there. I still have this awkward feeling that The Failure and Marco will get their grubby hands on it. The only fact is (KTF); time will tell.

In light of the 'feasting frenzy' with the past BOD as far as bonus payments were concerned, perhaps SAG can ask the new Chair of the RC to issue a RNS plainly setting out the parameters for bonus awards, with no 'special' bonuses. When I inquired with the previous Chair, and The Failure, only the later replied, to the effect that since no RNS had been issued, it would not be possible to disclose the parameters. Of course, there were non. It was a case of greedy pigs with snouts in trough. GL.

Yellow. you are incorrect again.There is no harm in making public, comments made by a Directos to a SH in an email. The phrase 'avalanche of orders' is in the public domain, and I believe is a direct wuote from Ryan in an inerview with proactive investor. You should read it and get wised up. BTW, Why are you still here after posting that you were leaving this BB. Please go, you add nothing to this board.

Posted by KeeptoFacts, quote;
'good luck with your trading.
keep in mind these boards are more 'care in the community' than investing resources.
a few people will offer sensible oppinions but far far more are wannabe traders and others with an agenda or grudge ....'

KTF is lucky, he's all of those rolled into one, except sensible opinions ( only one p please), of which he is bereft.

ps. before anybody says I should be in bed rather than posting at 02.38 BST. I live overseas, in the Sun, by a beach.

If I can briefly relate facts about Sound Energy. This company had an accountant CEO, with previous employment, as a bean counter in RDS. The co was (is) an exploration company, for gas, initially in Italy, and later in Morocco. The sp in 2014 was pennies. The Moroccan asset already had gas finds by previous operator. There were 3 successful drills, in the same area as previous gsd finds. The sp reached £1. 3 outlier drills were performed in 17,18 and 2019. All non-commercial. The gas discoveries amounted to c0.5 trillion cu ft of gas,. The UK uses 3tcf per annum. So a substantial amount of known reserves. After the failed drills, the CEO put the co up for sale. SOU held 47.5% of the License. He found a buyer for assets which would have left SOU with c14% of the License. The 'deal' fell through because the buyer could not raise the finance. The CEO paid himself c £1M pa the last 3 years. Following the breakdown of the deal, CEO left, and several other Directors.
The sp went to below 1p. There is a new CEO, an OnG man, with geolgy degree, and experience in exploration. After only a few months, a new direction has been given in the medium term to build and operate an LNG plant utilising the gas from the discovery. A HOT agreement has been reached with a LNG developer, who will inject capital, and an income stream next financial year of c$27M. This will keep the Co solvent, and allow, in time, the ultimate target of an OnG man identifying drilling sites which may get the sp in 4, 5 years back to 50p plus. Moral. Accountants are fine with established, producing, profitable companies, whi need a man at the helm to reduce taxation payments. At this stage EML need a mining man. It has found one. All looks good for 2021 and production towards the end of that year. Sorry for lenght.

Yellow; I'm not sure that your statement in relation to my post ' good solid fundamentals' is correct. I made assumptions. For a fee based company, the forward trading PE may well be 30, 40 x Basic earnings, which would require, on previous analysis, only 11 DMG plants on-line. Additional engineering income would further reduce this number. Also, as a poster pointed out, some fee based companies exceed 50% contribution to margin. I'm sorry to inform you that my post was not deramping, but only highlighting the significant upside after we reach 20+ DMG sales. Naturally, share buyers often buy on forward fundamentals. In the great scheme of investing, only dreamers and fools look for 5x, 10x 20+x sp in weeks and months. The realists, and the investors who make money, are the ones that invest on present, or future prospects, and are willing to wait several years for a 5 , 10, 20 fold return. Pity you sold out at 0.6p, In any case, you posted several days ago that you were offski. I;m sure at one time you were decisive, but you're not so sure now. Goodbye.

I wrote to PHE last Sat, 'investorcontact' re the 'deal', and was surprised to get a prompt reply, same day, from D Ryan, explaining a few things, all were accurate and plausible, including the 'debt' of W2T which is 'not a debt. and is repayable to PHE. However, I am not comfortable with the number of expanded shares of 3.315B, which at todays valuation gives a MC of £113M. Giving a PE of 20:1, this would entail the Company making £5.67M pa of basic, diluted earnings. Most companies would be happy for this to be in the region of 15-20%, however, for PHE, where the income is 'fee' based.and minimum of manpower input, I have assumed a 50% margin. Hence, to generate £5.67M pa of earnings, would require an income of £11.3M, or 22 DMG plants. How quickly can we get 22 DMG plants? Like when I bought a pair of orthopedic shoes, I was very sceptical, but I stand corrected. lol.

1 MMBtu is equal to 1 million BTU (British Thermal Unit). Natural gas is measured in MMBtu's. 1 MMBtu = 28.263682 m3 of natural gas at defined temperature and pressure. 1 standard cubic foot of natural gas yields ˜ 1030 BTU (between 1010 BTU and 1070 BTU, depending on quality, when burned).
Hence, The 'takeorpay' of 90M cum is 3.18 million MMBtu. At the min, price of $7/MMBtu, guaranteed income is 3.18M x $7 = $22.3M pa. The coupon repayment of the loan is about 7% of the minimum guaranteed income. In the best case scenario, the income would be 100/28.26 = 3.54 million MMBtu x $9 = $31.8M.
This is great news, but with the obvious downside , again, of the BOD being shy about the prospective partner. I'm sure all of us , except the few remaining 'disciples ' left here, are terrified that any prospective partner will have The Failure on it's BOD. Again, great news, and will be a 'giant leap' in the ultimate aim of exploring for more gas, and rectifying past mistakes, and go a long way to recovering losses made from previous idiot management. It's a long wait, but. we are on the right path, with a very profitable plan. GL all.

Always remember the first rule that drives CEO's and fellow Board members. It is to ensure that they make themselves financially secure. If the Company does well, that is a bonus.

Clarification please. Below is copied from Jan19 RNS;
'The Company has entered into a heads of terms with a view to finalising a formal sale and purchase agreement in Q1 2020. The acquisition would be in the form of a non-cash transaction using PowerHouse shares to acquire the whole of the issued share capital of W2T, at a ratio of 60% PowerHouse to 40% W2T, with 87.5% of the Powerhouse shares issued in exchange for W2T shares being locked into a no-sale agreement for a minimum of a year, and orderly market arrangements for a further year. The agreement will be subject to shareholder and regulatory approval.'
At the time of this agreement, the PHE sp was 0.4p, and based on the parameters as given above, the expanded shares in issue would be 3.315B, with PHE having 1.989B and W2T 1.326B, At that time, it would have valued the W2T 'shares ' at £5.3M and PHE at £7.9M ( 40:60). At todays sp, the respective figures are £47.7M and £71.6M. Such deals as this when agreed in other companies have been on the caveat, that the number of shares issued would be reflected in the sp at the time the agreement waqs concluded. In our case, the number of shares issued to W2T to satisfy the monetary valuation would be 147M shares, not 2.07B. Assuming the sp remains the same, the MC of the enlarges company will be £119M. , and at the sp of Jan 19, MC would have been £13.2M. The only project that W2T have, as far as I can see is the Protos DMG project. Why has the wealth of W2T owners increased from £5.3M to £47.7m. And, BTW, they can sell 15% 0f shares, or 198M in the first year. I would have thought, that on Jan 19. The W2T owners were happy with £5.3M, They must be doing Cartwheels now.

KTF. Please refresh my memory. Who was the idiot, when T10 was delayed by key pieces of necessary equipment being all the The World, said that it was The Failures plan to hold things up because there was a deal being negotiated to sell the Company?
Now that's a real idiot. Who was it?

Ahh. A few of you have finally woken up to the 'red flags' with PPS and it's debt. All of the companies that I am aware of, at the IPO stage, went public in order to raise cash for investment in the business, to take it to another level. Nahib decided not to do this. He only allowed about 6% of the issued share capital of the Company to be sold on the open market. This means, that at the IPO price of pennies, he raise an insignificant amount. Any investment in the Company since the IPO has been done Nahib, and his associated companies at 10% interest rates, substantially higher than than could be obtained in the Money Market. Remember, £6m of the debt can be converted to shares at 2p each, that's 300m shares. or nearly a 50% dilution. And from todays' RNS, the debt repayment date., as I forecast, has been kicked down the road again. Despite several mails to both the CEO and CFO re; debt, not even an acknowledgement. The H2 market is growing all the time, and FC technology will be at the forefront for drive trains of all sizes of commercial vehicles, trains, boats, ships, even light aircraft, in the foreseeable future. I'm afraid ShearClass is incorrect in his statement that net debt is 10X sales pipeline, The net debt is c£100M. There is every chance the Company will be taken over in the next few years, but not at todays sp with the debt and arrangement with the owner. It is all very curious. I sold out with good profits and have no intention of buying back in, for those of you who will say I want a cheaper re-entry price. I keep an eye on this share out of curiosity. I do wish all investors good luck, and hope I have missed something very fundamental.