I don't think it would surprise anyone who is aware of Sound that JP would be in demand elsewhere. Maybe he's had an attractive job offer but, in any event, he has now publicly committed to remain with Sound for the crucial forthcoming 12 to 18 month period that he's often told us about.
He is obviously busy with posts elsewhere and that may well be the reason for his decision.
Looking at Sound's 2016 accounts, he was paid £60k and has 1m share options exercisable at 60p. Maybe he was given more options in 2017.
That is the basis of speculation on my part: there have been suggestions from JP that a main FTSE listing is a possibility. Now - while I haven't checked FTSE regulations about share options for non-execs - I have read a recent RNS from HUR, which is in the run up to move from AIM to a main listing & it's non-execs have relinquished their share options for 'nil consideration'.
If you're a busy person and wanted to divest some non-exec positions, one of which is at Sound, in respect of Sound would you rather have £60k pa or 1m+ potentially very valuable share options?
There could be a third reason : he wants to sell some/all his shares and doesn't wish to harm the SP by having to notify the market as a Director would have to..........I'm a little surprised by his going with immediate effect, having served on BOARDS for many years in my experience it's rarely a good sign and can ruffle investors especially institutions, so it does seem rather odd.
I note the 'medium term' plans for replacement NED's and alongside James staying for 12-18 months the liquidity event timetable continues to fall back......long term, I'm not worried at all by this if it helps achieve maximum buy out price, but clearly more patience required.
EasyBrent a fool? I don't think so - his questions have been irritating and annoying, but also annoyingly pretty close to the truth, and his SP predictions likewise - we may not like the message, but don't ignore it......just my opinion as a foolish pi trying to get better at selling on news and buying on rumour - or is that the other way round?
I am not saying its not the same number, but a resource certificate report holds many more details then Sound announced in the 20 Dec 2017 RNS.
It would, therefore, be very helpful to have access to the full report.
It comes across a little bit odd that Sound Energy doesn't release the whole Resources Certification so its investor can read the full document. I thought James Parsons aim was to run Sound as transparent as possible.
Its a while since he was appointed at Genel so difficult to see how that would have to change the situation now. Sound is also a bigger company in terms of mcap compared to Genel, so a bit odd to leave Sound.
He could also have waited until the next AGM to step down. I guess there are only two alternatives, a) he was either pushed out, b) he didn't want to stay for some reason.
Dronaig, youll get 1 Coro share for each (approx) 5.5 Sound shares.
What Im unsure about is how these will be treated for tax purposes (if held outside an ISA) - will they be treated as income or capital gain?
Given that the RNS also talks about a Sound capital reconstruction it may be treated as a capital gain (guess). From the timetable given (late April) it will be in the 2018/19 tax year.
Capital reconstructions generally mean either cancellation of (some) shares or reduction of each shares nominal value (each share currently has a nominal value of 1p). Im guessing that well see a reduction in nominal value but I may well be wrong.
Update today on progress of the creation of CORO.
Details of the sale of Italian assets to Safron/CORO now available in todays RNS.
February pencilled in as the start of the fireworks.
Laura has always interested me and it seems that SOU is retaining a 5% royalty on future revenues. Nice !
Sound Energy, the African and European focused upstream gas company, is pleased to announce that it has entered into a binding conditional sale and purchase agreement (the "Binding Agreement") with Saffron Energy Plc ("Saffron") under which it is proposed that Saffron acquires Sound Energy's portfolio of Italian interests and permits through the acquisition by Saffron of the entire issued share capital of the Company's wholly owned subsidiary, Sound Energy Holdings Italy Limited ("SEHIL"). SEHIL holds all of Sound Energy's Italian oil and gas interests through its own wholly owned subsidiary, Apennine Energy SpA ("APN"). It is proposed that Saffron will be renamed Coro Energy plc.
The Binding Agreement constitutes the first part of the transaction envisaged by the heads of terms announced on 5 October 2017 (the "Heads of Terms") and the acquisition of SEHIL by Saffron will result in the combination of the Italian oil and gas portfolios of Sound Energy and Saffron (the "Proposed Transaction").
The Binding Agreement is conditional on, inter alia, completion of a firm and conditional placing by Saffron (which will be subject to shareholder approval) to raise funds for working capital, the approval of shareholders of Saffron and re-admission of the entire issued, and to be issued, share capital of Saffron to trading on the AIM market of the London Stock Exchange plc ("AIM"), as well as the approval by Sound shareholders of the Sound Capital Reduction (as defined below). It is currently expected that these conditions will be satisfied by the end of April 2018.
Under the Binding Agreement, and subject to Saffron shareholders approving the issue of new shares by Saffron, the consideration for the disposal of SEHIL will be fully satisfied through the issue of 185,907,500 new ordinary shares of £0.001 each in the capital of Saffron (the "Consideration Shares"), subject to any rounding of fractional entitlements.
The Consideration Shares are intended to be issued by Saffron directly to Sound Energy's shareholders, pro rata to their holdings of Sound Energy shares on a record date (the "Repayment Record Date") expected to be set as 26 March 2018, with Saffron being bound to issue the Consideration Shares pursuant to the terms of a deed poll (the "Deed Poll") to all Sound Energy shareholders on the record at the Repayment Record Date (the "Repayment Record Date Shareholders"). Because the issuance of the Consideration Shares to Sound Energy shareholders in consideration for the transfer by the Company of the shares in SEHIL to Saffron will constitute an indirect capital repayment by Sound to its shareholders, Sound Energy will propose a capital reduction (the "Sound Capital Reduction"). The issuance of the Saffron shares directly to Sound Energy's shareholders will not be possible unless the Sound Capital Reduction receives Sound Energy shareholder approval of the same, at a general meeting to be convened on 8 February 2018. A circular to Sound Energy shareholders convening the general meeting and containing details of the Binding Agreement and the proposed Capital Reduction will be posted in the coming days.
Under the terms of the Binding Agreement, Sound Energy will retain: (i) its economic rights to receive the proceeds of any future sale of the land comprising the Badile permit and situated in the Piedmont Lombard Basin in northern Italy owned by SEHIL (the "Badile Land"), which had an unaudited carrying value of £1.6 million as at 30 June 2017; and (ii) the benefit of expected SEHIL Italian VAT receivables totalling 4.0 million linked to Badile drilling costs (the "VAT"). Under the Proposed Transaction, Saffron has undertaken to remit the net proceeds of the Badile Land sale and the VAT to Sound Energy on receipt by SEHIL.
Furthermore Saffron has agreed to grant Sound an overriding royalty of 5% on all revenue that may be derived from any wells drilled on the exploration license D.R.
I think that will be January 2018 rather than 18th January.
Timescales are a little disappointing. Seems to indicate that our time may have to wait until 2019.
I think thats why the share price has drifted down.
I still hold. Wouldnt want to be out just in case something happens this year.
Sorry, guys. Busy cutting wood yesterday and then reading the latest on ECHO (see link on ECHO board), didnt have chance to check in till later ;-))
Looking forward to news on all fronts.
(And my CORO shares)
Nice to see a few old friends still looking in. Im firmly in agreement with B_B on the future of the SOU stable. Looking forward to SOU news, ECHO news (up again today), and my CORO shares landing on the doormat (buy more when they relist!). Overall has the makings of a very good 2018.
SOU at £2.018, ECHO at £20.18, and who knows where CORO will start (and end up!)
Hope we all live to tell the tale.
And , remember the SOU £1 party ? Well I sold a few at slightly less than that to spend on a mid life crisis (Westfield 4.6 V8!) thank you JP :-))))
But, still got my core holding, and holding fast.
Luck all, TP
With regards to the Saipem Drill, maybe another drill anticipated which we have not been informed of or it could just be cheaper for the operator to leave it dormant until our next drill rather than pay mobilization costs to ship it elswhere if no other work booked in for it.
My thoughts are based on the number of rigs lying dormant in my neighbouring Cromarty Firth. Some have been dragged here and left for over two years now. Won't be every day that there is a call for a Saipem Drill rig me thinks.
Maybe we could negotiate a sneaky second drill in the interim just to keep it from being idle
Merry Christmas and a prosperous 2018 to everyone, (Yes............even you CWT!!)
BB, on the iii home page click on log into research account.
In terms of idle speculation Ive been wondering why the Saipem drill is being kept unused near Sidi if the next Tendrara drill isnt starting until April/May. Perhaps there will be another drill in, or near, Sidi before Tendrara? maybe the much hinted at extra acreage RNS will reveal all &, hopefully, in time to be a topic at the next chat on 28 December.
Unless I can shear it, feed it (monetary top ups aside!!!) oil it, paint it, screw it , or patch it with cement and plaster I'm pretty well pharked.
You and me both brother
Happy Christmas and lets hope ii (and our shares) do better in the new year ;-)))
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