Member Info for Woodrow

Thanks for your answer Crude.
I share your view about communication but not sure we will get it going forward.
Let's see what happens at the FSC .

Crude,
If the deal goes through and the asset is then being run by a JV which is private with no transparency what would your opinion be on that?

Or

Of been to any events/trips.

This might be a good deal of not but I wonder how much of the details are known by Mr Seghri (acting CEO)
What we need is a new CEO to take a look and if it's good fair enough but with James resigning he should no longer have any involvement with the deal.
If the old chairman is ill I wish him well but it really looks suspicious that he resigned the same day as James.
The Chairman or acting chairman should ask James to stand down immediately but wait who is the acting chairman ....Marco.
There is no way Marco will ask James to leave as they are friends and partners in C4.
As I asked overnight how was the decision to appoint Marco to acting chairman reached?
He should be impartial but difficult to see past his and James close working relationship.

Who made the decision regarding the new appointments?

Top

Crude
Did you too up yet?

Who buys the shares when you sell them and if this is just being run down what do they propose to do with them?

Desperate = separate

Just thought,at the moment have we not already got desperate companies like East Morocco and South Morocco (may not be the actual names) . If we have surely the asset is already separate from Sidi so the JV is even more suspicious .

At the moment Schlumberger are a junior partner in East Morocco but have other interests so why can't we keep our 23% or 14% in Soundenergyplc Ltd as a junior partner and have other interests such as South Morocco(Sidi)?

It's a bit vague to say the least.
At the moment we own 47% but surely if we move the remaining 23% into a new JV we would own 0% and would have to hope that any money that the JV got in would be transferred to Sound/PI's.
Why do we need a JV at all?

Can someone please post their understanding of how the Joint venture would work please.

Tradmeup,
Still to be finalised but maybe some exploration.
Have to wait for the final deal.

Jez,Pne,
Read my posts about James email if you haven't

Trademeup,
I asked James the following:-
Hi James,

Today's RNS only mentions up to first Gas, there is no mention of free carry on exploration wells. There is a big difference between the scenarios... Can you expand on 'still to be ironed out' and what it might depend on.

Regards

James reply:-
It is expected to be a carry on all spend in Eastern Morocco upto a cap of the number in the RNS. That should include exploration wells but we have not resolved yet exactly which ones and timing. This is better discussed when we have a signed contract rather than the early stage of exclusivity.

James

So all wells up to 58.5 mil

Tradeemup,
Emailed your interpretation of James email back to James for his opinion,
His reply was,
Probably worth pointing out that we expect to be carried for future drilling, including exploration but details still be ironed out, so not spending cash on that. And I expect us to quickly adjust our cost base for a non operator status so the salary burn post deal should be heavily heavily reduced.

James

Hello xxxxx. Amongst the death threats and accusations there have indeed been some reasonable inbound emails.

We believe this deal provides on multiple fronts with cash upfront, continued drilling, a funded development and further upside if our remaining material exploration wells come in. The basic terms are we sell just over half of Eastern Morocco in exchange for US$54.3M cash (tranched) and a carry on all future capital needed (which we estimate at US$58.5M worth to us). So total transaction is about US$112.8M. We then retain 23.3% of the asset (against the previous 47.5%) and have a “free ride” to production and further drilling. It’s a structure which we like as shareholders retain exposure to the basin potential as we move forward whilst also getting production without the need for further capital.

The Company name will follow when we sign a deal after which shareholders will vote. It would be highly unusual for the Company to reveal other offers (we are bound by confidentiality). Use of the proceeds would be considered by the Board when the deal is signed and may or may not result in a distribution (although we have flagged this might be our intent).

The commentators I have read have rightly pointed to a 19p read through on the share price on an enterprise value basis and about 17p if you take off the debt.

There is no involvement of any company with any connection to any Director – if there had been it would have been a related party and the disclosures would have said so.

James

Good Afternoon James,

I am sure you have received a lot of emails today and I hope most, if not all of them, have been polite.

There is obviously a lot of chat on the boards today and some are saying there are questions outstanding and I would like clarity on the following:

Can you please supply a comprehensive easy to understand translation of the RNS (how much money will Sound Energy receive and what will the outlay be to Sound Energy going forward etc).

When will we know the name of the Company that is the purchaser as you cannot expect us to vote for a deal without knowing the name of the Company.

Who will be the operator of future wells.

Can you rule out any involvement of C4.

I know you think this is a good deal but once again the markets disagree with that position, can you explain why you think it is a good deal.

Without giving names of the other Companies involved will we get to know all of the other offers submitted.

Can you also confirm if there will be any one off payments coming to the shareholders.

I can understand why this has not gone down well with the posts on the LSE board, as it looks like we have offloaded over 50% of Tendrara for no financial reward, resulting in a reduced share price while Sound Energy Board of Directors remain in situ without losing benefits such as remuneration packages.

It would be appreciated if you can supply me any information that I can post to reassure fellow investors.

Look forward to hearing from you.

Best Regards

Reply on the next post