SDX update is interesting as a yard stick for value of gas in Morocco. Thought more would have been made of it.
Per Edison report below, SDX well cost is $2m and success rate 80%. They have a 12 well campaign targeting 15bcf prospective. At 80% success that’s $24m outlay for 12bcf of gas. Extrapolate that up to Sound’s net offering of say 300bcf (prospective) you get $600m or 46pps/ish.
There’s likely different recoverability factors and we know a large infrastructure cost for Sound. Personally I think it’s reasonable to hope for an offer in excess of 25p.
Bought in here about a year ago at 5p. As per new releases on company website, 95.3% of company sold (by issuing over 9 billion new shares) to Talara. As part of this deal, the management managed to issue themselves a shi7 tonne of new shares (now equivalent to 2%) of company. So current share holders own just 2.7% of company. Aka at 1p, this is equivalent to (1/0.027) = 37p/share in old money (aka before last December). Also unaware of any Caza drilling so chance of major success seems about 0%. Chance of pump and dump I'd say 99%. Pretty happy as had totaling written it off, was ****ed management gave away 39/40 of the company after ensuring their own interest was safe. ******s.
http://www.cazapetro.com/index.php?id=74&url=http://feeds.mwnewsroom.com/article-caza/rss?id=2013308