Member Info for testpack3

Analist ( at least it's not analyst)=, lol) Divi is #dreamsindesert. below is taken from RNS re; HOT agreement;

'The cash consideration will be payable in three tranches: 55% on completion of the Proposed Transaction (from which the Company will meet transaction expenses and related costs); 30% at the Final Investment Decision (when binding commitments are made to provide the development capital) of the concession; and 15% within 60 days of the delivery of first gas production from the concession. The completion of the Proposed Transaction will be subject to satisfactory completion of due diligence and Purchaser financing'

crude. Thnx for yr comment re; the car salesman, but it isn't a joke, it is based on a real person. As far as us disagreeing on almost everything, I refer you to the sp, and my comments over the years, and in contrast, yours. Have a guess who has been correct, and who was talking nonsense.? Look frwrd to your reply, and may be you can reply to the other half a dozen questions I've asked of you, re; The Failure, and his policies. Oh, btw, I see from an earlier post you intend to make the acquaintance of the new regime. And just like Trump, you accuse people of crimes that you commit,. Keep on stalking crude. And I was hoping with the, almost, departure of The Faithful, we would be spared your musings.
Newbies. I'm not a newbie, and have been here longer than some of the 'veterans'. A handful , like the 'brownnoser', , often dismiss my comments with what they think is an amusing put down. Few answer the questions. Eh KTF

I mailed him yesterday at the contact given on the resignation RNS, questions@sound etc, congratulating him, and asking if the BOD had considered raising cash and going alone ( with SCHL and ONHYM naturally), and my mail was blocked. A sign of things to come I believe. Vote against this deal. Trellis may need the help of a Solicitor in asking for an EGM, and will require the consent of a minimum of 10% of the issued share capital, so, about 105M shares. We will all get doubly screwed.

Yes DaveyBoy, the RNS does state UK Co, but always bear in mind, it was written by The Failure, with his MO of lies and deceit, he could explain it as it was you that misinterpreted the RNS? .lol. And who knows, Enexon as I write, may be applying for UK listing?. What concerns me was the obvious lack of effort by The Failure to get SM resolved, either by more drilling of wells, or finding a farmin partner after being told 2 years ago, that there were 10 interested parties. It will come as no surprise if The Failure gets his grubby , money grabbing paws with C4 on this 75% SOU owned asset. At least with a 2nd hand car salesman, you end up with a car, with The Failure, you only get taken for the ride.

Yes DaveyBoy, the RNS does state UK Co, but always bear in mind, it was written by The Failure, with his MO of lies and deceit, he could explain it as it was you that misinterpreted the RNS? .lol. And who knows, Enexon as I write, may be applying for UK listing?. What concerns me was the obvious lack of effort by The Failure to get SM resolved, either by more drilling of wells, or finding a farmin partner after being told 2 years ago, that there were 10 interested parties. It will come as no surprise if The Failure gets his grubby , money grabbing paws with C4 on this 75% SOU owned asset. At least with a 2nd hand car salesman, you end up with a car, with The Failure, you only get taken for the ride.

Enexon Ventures Ltd is an energy company, focused on the gas industry

Leveraging on its expertise and resources and on a network of specialists, the Company can directly operate

petroleum agreement licences or production concessions and provide a full range of services from integrated reservoir modelling and design of traditional engineering to management of production operations of gas or oil fields, refinery and pipeline

Enexon Ventures Ltd is headquartered in Malta with technical offices in Italy and Morocco

The Company mission is to pursue the following main objectives by setting up new ventures internationally, with a specific focus on Africa and the Middle-East:

Luca's brothers company. I wouldn't bet against this. An Italian and Moroccan heist.

I've probably been invested here , unfortunately, longer than you, over 7 years. Rinse and repeat has nothing to do with cash raises. I would prefer a cash raise now, to take us to 1st gas. Still retaining 47.5% WI in The License is of para-importance in my opinion. With this catastrophe of a deal we will end up with 14.5% of The License, and be totally dependent upon an unlisted private company, who will not care a s++t about SOU PI's. If you are a SH, and you vote for this deal, plse tell me why, and how you think you will get your losses back, assuming you will have losses.
Gasbag. I applaud Trellis and his endeavours, but I have been asking The Failure to resign, by mail, since July. I think you will find that Trellis was sitting on the fence, and wanted to see what the LE would be. Capiche.

I am feeling rather pleased that The Failure read, digested my mails to him, and decided I was correct, and resigned, and we hopefully have heard the last of brown nose crude - oh, unbounded joy. Of course , he may start stalking Marco now. Seriously though. this piece of slime is tricky. Posted below was Exploration posts from last week. He may have hit the nail on the head., especially with the departure of The Chair. If he is correct, this is not good news, and even more reason to try and vote this deal down. It will be a stitch up, and The Failure may weave his web of deceit, and I thought at one time, he might be offered the role of CFO, since he's a bean counter,. On more thought, he might be involved in a plan for SM, since that was not part of the deal. Oh, Heaven forfend, he possibly couldn't be so thick skinned and shameless, could he? Yes he could. I think Trellis should still go ahead with his questions, addressed to Marco, for clarification on the deal, and what he thinks of raising cash in the money market to go it alone, still leaving OGIF with their 15% of the License with their near 30% SOU holding.

I wonder if the new investor has anything to do with Luca Madeddu and his company Enexon via a UK subsidiary. Enexon was set up by Luca’s brother, Stefano and designed to do precisely what this new JV is trying to achieve. Luca has all the right connections in Rabat for the venture to succeed.

According to its website Enexon is “Leveraging on its expertise and resources and on a network of specialists, the Company can directly operate petroleum agreement licences or production concessions and provide a full range of services from integrated reservoir modelling and design of traditional engineering to management of production operations of gas or oil fields, refinery and pipelines”

The way the proposed deal is structured requires considerable insight into the challenges of reservoir development of the TE-5 gas field and the upside of nearby, un-drilled prospects in the immediate area of the Horst. From Sound’s perspective they would want to ensure the new investor can function in Morocco and qualifies as a competent operator to Onhym.

Luca knows the OGIF and AFG people. They may even be the source of the staged payments and see the opportunity to double their money from Luca’s knowledge of the subsurface. Luca has inside knowledge of Morocco's key gas projects. Sound Energy went into partnership in 2017 with OGIF, which took over Prince Moulay Abdellah Alaoui's interests in the Tendrara field. Following this link-up which was organized by merchant bank AFG (owned by Mohamed Benslimane, husband of Lalla Zineb, a cousin of M6, Sound made former AFG partner and OGIF director Mohammed Seghiri managing director of its Moroccan subsidiary.

I quote;
'Testpack, 'Merry Ordeal' once said to me "it's not dilution if it adds value"...how much are we getting paid for the equity we received from OGIF & does that represent value are the questions you need to ask?'

Oh dear,crude, resorting to quoting the guy who would have bankrupt SOU , had not a. n. other stepped in and ousted him. !. So tell me the steps that SOU BOD took, or are taking, before any 'deal' is signed, to raise money in the money market, without any dilution, and the repayment made from 1st gas income 2 trs hence. Of course, it will need a new CEO, since we would be going to a producer which is not The Failure's forte.

One of Yr message yesterday;
'Testpack, take yourself back in time & try talking about a share raise that investors might have supported? You cannot do it because it is the equivalent of medieval heresy: you would have been metaphorically burned at the stake for ideas that are as unwelcome as the flat earth theories were in the 1600s! No investor likes share dilution! '

I replied saying that you 'were all over the OGIF deal that gave SOU an extra 25% of the license area in exchange for c35% share dilution. In your words then , some share dilution can be good, making your above comment typical crude hogwash.
Also, getting a reduction in WI from 47.5 to 23.4, and then to 14.4%, is tantamount to share dilution , since the end result is the same, and that dilution overall is c130%. Any comment? Thought not.lol
Ask The Failure at your next tete-a-tete what results the co had when trying to raise funds from the money market, and let us know. Thanx.

crude - I quote from your earlier post;
take yourself back in time & try talking about a share raise that investors might have supported? You cannot do it because it is the equivalent of medieval heresy: you would have been metaphorically burned at the stake for ideas that are as unwelcome as the flat earth theories were in the 1600s! No investor likes share dilution!

When we had a 33% dilution when acquiring OGIF 25% of license you lauded this as a great 'deal', and immediately took The Failure's £1.50 /tcf to £ 1.70ish. !! This was done when the sp was c84p and and a few millions was raised from PI's. And in any event, if you attempt to be 'fair' ( not in you MO though), I wwas suggesting, as another alternative, raising cash from the money market, since we know an investment company is willing to put up $112M for half of our license. I am pretty sure an amount of c $50-60M could take us to 1sr gas, with no dilution, still keeping our 47.5%, and on better terms than your man negotiated with his pals at CIP. You are a disgrace in that you still want a self confessed failure ( he put the company up for sale, after depleting £30M in cash less than a year ago.), to go forward with this abomination of a 'deal'. Kirk, your star burnt out a long time ago, take a hint.

The unnamed company is private/unlisted. Only has 'Guidelines' on company governance, and basically, can do whatsoever it wishes without notifications. If indeed it is Lucas' bro's business as credibly suggested by Exploration, it is worth bearing in mind that family run businesses rarely survive past 3 generations. Board appointments are usually nepotistic. Beside being an appallingly bad deal, it is made worse with the new owners to be, being a Private Unlisted Company. When you thought it was safe to come out of the water. Get behind Trellis, and at least mail The Chair for an EGM to make him aware of what PI's think about The Failure.

I've not had a reply to my last 2 mails to The Failure. Yes, they asked for his resignation, but were constructive. lol. I'm afraid I am persona non grata.. Since at least you are getting replies from him, can you ask whether the company, at any time in the past 6 months, made any efforts to raise funds, either by share dilution, or funds from the money market, based on income from 1st gas, or a combination of the two. Cheers, Testpack3

Mahatmajacket. You feel that better offers paying cash have been received, and The Failure and BM like the prospects so much, they want SOU to retain an interest. Have to disagree.
1) BM's interest was merely at the behest of The Failure to show solidarity. He didn't buy any 'Golden Tickets', and was 'joking' when he said 'not enough' when asked how many he held at one of the rampfests.
2) If a cash offer had been made, and rebutted, then I'm sure the co. would now be buying with the intention of a hostile T/O. It would need c29% before a T/O bid was compulsory. Naturally the sp would rise after the 3% RNS, but probably no higher than 15p, and say an av. price for accumulating 30% is 12p so costs it, £35M.. If the sp went to 30p ( most on here would sell, according to their posts(, then it could get 30% for c£90, and 51% of company for c£150.M Thats why I believe no cash offers have been received. However, it may be biding it's time, gauging SH sentiment, and see how far this shambles can fall.

Excellent short post scarf. We have all seen what he can do, and it amounts to, not a lot, except of course, filling his boots. The sp tells everyone all they need to know about this 'deal'.

Ask The Chair for an EGM.

Prudent. We know the outcome for SOU SH's in this 'deal'. An unlisted company will acquire 51% of SOU interest in The License area, leaving us with 23.4% WI. A further 9% , with no consultation, if 'things' go well. , leaving us with 14.4%. According to The Failures mails to various posters on here, he says that PI's can still do very well, I don't see how we can do very well with 14.4%. If that were the case, imagine what the sp would be if we raised funds and went only with SCHL and ONHYM to 1st gas, and the further drills to prove up the Basin Model.? This unnamed company will not, as it's MO, have the interest of SOU SH's., only their own interest as an investment company. We know The Failure will try and spin as the deal of the century, but his word is what the sp is! Vote him out before its to late. He has bad form, and it will be no good complaining after the event, when we realise we have been shafted again. Action now, not in 6 months time.

This is an appalling 'deal'. It tarnishes the very word deal. It is done by a man with only one interest in mind, his own. it was sad to SO saying this 'deal' may not be The Failures work. It has all the Hallmarks of his work. It is bad for PI's. The market is telling us, loud and clear, what it thinks if this abomination. If this 'deal' goes through. think of future comms. An unlisted company has no responsibility to inform anyone of it's decision making and reasons. Please mail The Chair and ask for an EGM to oust The Failure before any vote is taken. I posted on Sat. , how we could raise funds, without more dilution, and go to 1st gas as independent company with 47.5% of License. The Failure is out of his depth, and the prospective purchasers obviously ran ringa around him. We will never know about the other bidders, if any. There are only a handful of posters here who believe anything this deceitful, disgrace says. End his days at SOU and vote him adios.

Let us consider 2 differing scenarios;
1) On first gas, end '21, start '22, EBITDA is c$125M ( Thomas theT posted last Thu 14.51, in reply to Q that EBITDA net to SOU at 23.4% would be $30M, ), so net to SOU at 23.4 % c $30M., and would be c$18.5M at 14.4%. No taxation, . A 1p divi pa needs $13M ( £10M at 1,30 ER, , ), and 2p $26M. A 1p divi would probably men a 20p sp ( 5%).
In meanwhile, available funds have been used, not only for horizontal wells at TE5,6,7, to increase maintain and increase production levels, but additional wells in Annoule, and SM. 2 new discoveries with fracked rates each of above 40K cfd., another 1p divi pa looming , so sp reflects this and is 40p. Hallelujah.

All the above, but done without JV partner, and hence, sp is 40p and 80p. Now, #dreamsindesert being realised.

2) JV produces 1st gas and sp 20p, and EBITDA $30M to SOU. Additional wells drilled are dusters, and future exploration abandoned. JV future involvement being discussed, and sp falls as doubts remain over direction and sustainability.

No JV, SOU has 47.5 WI, and paying 2p divi, 40p, sp, but abandons future exploration after dusters, and lets further exploration license lapse, or tries to sell them, including SM and Annoule, With the uncertainty sp falls to 25p, but CEO confident that divi is safe, and will be increased with greater output.

Of course, one of the problems the more astute will have noticed, in in the absence of no JV, show us the money.
We know one thing for certain. An unnamed party has offered c$112M for a half of SOU's 47.5%. So we know it has value, and this company is an investment and management company, not an exploration or producer, so since is not a producer, will have to employ senior staff to run the JV. Since SOU has failed in exploring, it must be safe to assume that a new team will replace the current incompetent BOD. This has a problem if Exploration is correct is his assumption that the JV is a Luca family business ( his bro. ) and will explain why The Failure recommends since he will still keep his snout in the trough, but probably as CFO. My point therefore, is that a new CEO, an OnG person, with likely EBITDA of $125Mpa, will be able to fund 1st gas, and exploration from the Money Market, and involvement from SCHL and OGIF. Especially the later, since it will still retain 25% of 47.5%, instead of 25% of 23.4, and probably 14,4%.

I'm sure my assessment is riddled with problems, but plse have constructive criticism and show me the glaring errors., esp jobbs, SO, KTF. Thnx.

I urge everyone to vote against this appalling deal for SH's. Ask The Chair for an EGM to oust The Failure.

Am I correct in stating that some time ago, the Horst was independently valued at c25-27p ps. or c£280M. If so, why is selling all our interest ( except SM, Is this the the new 'hidden gem' ?), at c£85M a 'good deal', and our WI at 14.4%?