Wizard, one Coro share for every (approx) 5.5 Sound shares that you hold.
Latest total shares RNS stated there are 1,016,103,628 Sound shares.
There will probably be a few more warrants exercised prior to the record date, but if there aren't the maths makes it one Coro for each 5.466 Sound shares.
Some interesting observations from the Chester presentation yesterday - thanks to those who attended & shared.
TE-8: when its loaction was decided (by Schlum apparently) there wasn't any AVO (amplitude vs offset) available but there is now. AVO findings would have suggested that TE-8 woul have been successful if the well had been sited a few km in either direction.
Future RNS's etc are going to be aimed at potential buyers in future, so us PIs aren't going to get as much info as we've enjoyed in the past.
First lot of seismic going to external experts today, should get results in 4 or 5 weeks.
Spud date for TE-9 is provionally 26 June.
JP isn't expecting success at all 3 of the forthcoming wells "1 out of 3 would do".
JP still talking about many multiples of current share price.
Sound Energy Shareholders on the register at 6:00pm on the new Repayment Record Date of 3 April 2018 will be issued with an aggregate of 185,907,500 (subject to rounding of fractional entitlements) new ordinary shares in the share capital of Coro Energy plc (the "Coro Consideration Shares"), with such shares being issued to Sound Energy Shareholders (pro rata to their holdings in the Company on the Repayment Record Date, subject to rounding of fractional entitlements).
Any idea what we will get as " pro rata to their holdings"?
The Schlum info wasn't part of the main event it was just a comment he passed while waiting for everyone to arrive.
The 3 wells are due to cost $8m(approx $5m net to Sound) each. That is $15m for drilling plus $7m for G&A. That will take approx $22m out of our $30m cash pile. JJ did mention that they were looking at "non-dilutive" funding to progress SM if the Koba test warranted it so, and it is just my guess, that maybe that is the reason for his visit.
There was a bit of discussion around the implications of Shell/Repsol taking the new acreage which also included the possibility that Morocco could look to sell Tendrara to someone else to negate Shell/Repsol becoming too dominant should their acreage prove to be as productive as ours. JJ, however, could make no definitive statement one way or the other.
Appreciate the feedback Billfish, & well done on braving all the snow for your two visits.
You deserve a hot toddy!
Good to hear that they seem to favour the 20" pipe - implies confidence.
In relation to "JJ on his way to Aberdeen tomorrow to talk to Schlumberger about what happens next" surely the next few months are already mapped out, seismic, seismic CPRs & the 3 drill programme to start in the summer?
So do you reckon the talk is more about the longer term?
Was there any mention of Shell/Repsol activity or the rather heralded but yet to land "new deal"?
Forgot to add on the main takeaways that they are looking to create an SPV (Special purpose vehicle) to build and manage the pipeline between TE-5 and GME and it is the 20" pipe rather than the 12" that interested parties are being asked to tender for.
I managed to brave the walk in (and back out again). It was worth the effort as we got a conference room and JJ gave his presentation but also conducted the meeting in an informal fashion so questions could be asked as we went along.
I won't go into details as Saleem has filmed the meeting and he will have it on Youtube once he is able to find a way of getting home (which may be some time).
The main talking points for the guys on the other BB are:
JJ on his way to Aberdeen tomorrow to talk to Schlumberger about what happens next.
The Coro deal remains as is i.e. there will be no change to the 1 for 5 share distribution
Completion is expected on 9th of April.
Luca is retiring in the summer which is a great shame as I was expecting him to be around until the end. I hope a retirement do befitting his contribution to the Company is being arranged.
That's all. Saleem's video is worth a watch for those interested. JJ did well fielding the questions, some of which I don't think he was expecting .
JJ didn't make it past Hadrian's wall tonight so there is nothing to report.
Hopefully there will be a breakfast meeting tomorrow am, but there is no transport running anywhere in Edinburgh at the moment so if there is anything to report I will let you know tomorrow. Just getting a wee bit auld for walking 3 miles in and out in this weather so I might miss the event.
PO Valley have pulled out of the SRON/SOU/PVE merger.
PVEs release about its withdrawal is rather more informative than SRONs version which states that it is for tax reasons. SRONs adds that the deal didnt represent fair value for its two Italian gasfields.
Regardless of that PVE will still have a big shareholding in CORO (SRON).
Cant help feeling its a bit of a sideshow as far as Sound shareholders are concerned despite the to-be distributed Coro shares.
Easybrent, I cannot understand why any individual should make abusive comments about you as you have said some wise things in my view. It seems amazing that it can be believed that if you (EB) make adverse comments about the company the share price falls. We both know that neither of us can affect the share price. What, of course, will affect it is the realisation that projections were mere pie in the sky and that making a profit is an illusion. Your comment about company updates is perceptive.
For those, like me, who don't have a Times subscription, there's also a Reuters report on it: https://www.reuters.com/article/us-shell-lng/lng-market-needs-200-billion-investment-to-meet-demand-shell-idUSKCN1GA1ZH
very quiet here after FSC no one got anything to say ? LSE seems to be excited but sp isnt reflecting that.
Could we be being held back and then a big buy out comes through, some how i doubt it, i think we will plod along until after 1 maybe 3 drills, problem is these are not anytime soon.
Frustrating as you dont want to be out but you know your money could be doing something elsewhere. At least i have time for my FRR rewards to realise and then load up more here. I do miss the 80's and id love to see us somewhere near them in order to really give the feeling that we are close to the big sell off. If we dop to low 40's even touch 30's then id have to load up some more, i did buy some at 55 thinking we were on our way to break above 60 but then we dropped hard.
A frustrating share but history has told me that patience pays off in the end.
Will seismic alone sell us? will our first successful (hoping) drill prove us up more for an eager buyer to jump in before we potentially prove up more? will it be our last drill that hopefully brings the sale? I have no clue but all I know is we have sometime to sit on our hands and wait. Personally if things go well I think we will have a buyer and sale if we have a successful first drill, as will buyers risk a higher price? IMO
Sound are appearing at the next Shares Investor evening in Edinburgh on Wed 28 February, if anyone interested..... I will be going. Saw James there 2 years ago, and SDX last year. Is usually a very good night with drinks after.....
Petromaroc have about 15.9 million Sound shares (approx. 1.6% of Sound's issued shares) and a net profit interest of 10% in Kechoula (SIdi) & 5% NPI in the rest of Sound's Sidi area.
Personally I can't see much of a rationale for Sound buying out Petromaroc as Sound almost certainly has much better use for its approx $30m(?) of cash eg. paying for drilling etc.
I think we're due some news on Sidi & its surrounding area and a third party (maybe extra acreage? maybe farm-in partner? Sidi seismic?).
Given the 'delay'(now mid 2018 onwards according to Q1 presentation) in likely Tendrara drilling I'm hoping we'll be seeing a drill elsewhere before that - maybe Sidi, near Sidi or another area in Eastern Morocco pinpointed by seismic.
The Companys Cdn $11.09 million principal amount of secured debentures principal and interest are due and payable in full on January 31, 2018.The Series 1 New Debentures (principal amount Cdn $4,762,400) bear interest at the rate of 10% per annum and are convertible, at the option of the holder, into ordinary shares of the Company at a conversion price equal to $0.06 per share in the first 12 months of the term (January 1, 2017 to December 31, 2017) and $0.10 per share in the last month of the term (January 1, 2018 to January 31, 2018). The Series 1 New Debentures are convertible into an aggregate of 79,373,333 ordinary shares, assuming a conversion price of $0.06 per share. The Series 2 New Debentures (principal amount Cdn $6,327,600) bear interest at the rate of 15% per annum, with no right to convert into ordinary shares of the Company.
Every time Sound updated their investor presentation, the next well at Tendrara / East Morocco is pushed out further in the future. I guess the only conclusion is that the seismic study has not resulted in any new prospect compelling enough to be drilled yet.
Can anyone explain in laymans terms the proposed reduction of capital document which I have just received, I believe I was supposed to of received a proxy voting form which is missing, this has happened before?. Do shareholders think this is good or bad for the company. For me it seems to draw a line under the Italian assets so we can now concentrate on our main assets in North Africa.
That is an interesting move - transferring the whole of the share premium account into distributable reserves.
After taking into account the Coro deal that leaves £269,527,210 transferred into distributable reserves. From that you need to take off the accumulated deficit which stood at £101,853,000 at half year end ,plus take off a bit for the last half year loss , which should not be much given Schlum are picking up the tab for most of it , say £8m-£10m.
This would leave the company with Net Distributable Reserves of roughly 15p per share.
Distributable reserves can be returned via dividend,special dividend, share buy back or by the return of capital we have seen with the SEHIL deal.
Sound do not have the cash (at least at the moment) to pay any dividends or do any form of share buy back. If we take it that Morocco East will be the center piece of the Liquidation Event then that only leaves Sidi Moktar as the source of either funds of capital to utilise those distributable reserves.
On the other side of the coin I think that SM must now have replaced SEHIL as the source of security for the Secured Bond took out with Greenberry in 2016.
The question is why create distributable reserves of 15p a share, which would have no effect on a the one time LE favoured by JP, unless there was a plan to utilise them in some way prior to the end game. ?
I would have thought that the prospect of a 15p distribution would have given a 50p share a bit of a kicker if JP could demonstrate how he would pull it off.
This should act, at the very least I would have thought, as a robust underpin to the current SP and even significantly higher.
Nice to hear from you both and it looks like I will manage to get another slug of Sound into the ISA before Boris takes over all the cabinet posts. .
Hi BF, the stagnant SP is a concern to all. Investors are edgy since last July 3rd when Badile cost us over 40%.I have been concerned but the pendulum still says all will be fine. Expect 12 t0 14 months for the end game,and £5 ish for the SP. Everyone to DYOR, hope I am right . Good luck BF.
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