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.
The announcement of the Chairman stepping down seems to have caused a bit of consternation on the boars today. I think it is mostly unfounded.
Taken on its own the announcement at first glance does not seem too encouraging. However there was another RNS today, issued by Genel, that throws some light into what is happening:
"Extension to Gas Lifting Agreement conditions precedent schedule
Genel Energy ('Genel' or 'the Company') is pleased to announce that it has agreed with the Kurdistan Regional Government ('KRG') a 12 month extension to the schedule for satisfying the conditions precedent ('CPs') contained within the Gas Lifting Agreements ('GLA's) for the Bina Bawi and Miran fields signed in February 2017. The revised date by which the CPs are to be satisfied or waived is 9 February 2019.
The CPs contained within the February 2017 GLAs included, inter alia, the execution of final agreements on the midstream gas processing facilities and pipeline transportation, and the completion of updated competent person's reports ('CPRs') for Bina Bawi and Miran. The CPRs relating to the contingent gas resources at the Bina Bawi and Miran West fields have recently been completed, details of which were announced on 19 January 2018."
Mr Whyte has been Chairman of Genel for some time now,a fact that seems to have slipped his mind with regards to his Companies House filings, and he has been caught up in the political minefield that is KRG/MNR/ISIS/IRAQ/IRAN/TURKEY/SYRIA. Not to mention picking up the mess from Nat Rothschild's latest vehicle for impoverishing investors
It has been a while now since I last visited the Miran/Bina Bawi project but from memory the numbers are something like this.
11 TCF resources.
Original Miran and Bina Bawi PCFs rewritten into a new contract.
Turkey buys the gas, Genel gets the condensate, overall return to Genel 15%.
KRG/MNR get cheap gas for power plants and local supply
Genel funds everything from the reservoir to the front end of the gas processing plant.
KRG/MNR fund the gas processing plant (was $4bn ) plus pipeline to Turkey.
Genel currently carrying approx $120m net debt
KRG/MNR up to their eyeballs in debt to anyone who deals with them.
So who is going to fund the project?.
You can see that Mr Whyte is somewhat conflicted, simultaneously managing multi-TCF projects at opposite ends of the Mediterranean on roughly the same timescale.
Many of the same bodies would have expressed interest in participating both projects so Mr Whyte had to make a decision on which project to pursue.
The bulk of his Sound rewards come from his share options which he can cash in whether or not he works for Sound. If JP sticks to his word he could look forward to 18 months salary at Sound before making way for the new owners.
The Genel project is much more advanced than the Sound project ( although anyone that can successfully manage herding that cats that are the ME interested parties deserves what they can get)
Contrary to an earlier post Genel are part of a very much larger conglomerate than Sound will ever be ( even if they do reach a four figure SP).
The link below shows where they fit into the overall scheme of things
For me the Chairman resigning is merely a means of resolving a conflict of interest brought about by the KRG/MNR issuing an extension to a project that conflicts with our own both in terms of timeline and potential partners.
As far as the statement on JP remaining for 12-18 months , well anyone who has been around for a while will know that in JPs terminology 12-18 is a fairly elastic measurement. I was at the presentation in Oct 2016 when it was first used and we are still 12-18 months from the LE. Myself I am using Douglas Adams number ( from Oct 2016) He certainly seems to have got the GOIP right in Morocco.
With the Chairman leaving JP's position within the company h
TORONTO, Canada, January 23, 2018. PetroMaroc Corporation plc (TSXV: PMA) (the Company or PetroMaroc) announces that D. Campbell Deacon has resigned from the Companys Board of Directors for personal reasons. Dennis Sharp, Chairman of PetroMaroc, stated Mr. Deacon will remain in his role as CEO to ensure the completion of agreements with various stakeholders including Debentureholders and will continue to work closely and cooperatively with the management of Sound Energy plc. Mr. Sharp went on to say that he is very pleased Mr. Michael Hobart, who has been advising the Company for many years, has agreed to join the PetroMaroc Board in Mr. Deacons place. Mr. Deacon commented, I am as committed as ever to finding a long term positive solution to the challenges the Company has faced over the past five years. I am confident the Companys ownership of shares in Sound Energy will continue to provide an excellent foundation until the further development of the Kechoula prospect and other identified targets provide clearer definition as to the size and extent of the potential natural gas resources within the Sidi Moktar permit in Morocco.
JP has made it clear that all options would be looked but it is clear his preferred option is to sell up , which I think most want including me. His presentations have painted that picture cleary enough.
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.
Important message from the Financial Conduct Authority:
Posting inside information that is not public knowledge, or information that is false or misleading, may constitute market abuse.
This could lead to an unlimited fine and up to seven years in prison.
If you have any information, concerns or queries about market abuse, click here.
The content of the messages posted represents the opinions of the author, and does not represent the opinions of Interactive Investor Trading Limited or its affiliates and has not been approved or issued by Interactive Investor Trading Limited.
You should be aware that the other participants of the above discussion group are strangers to you and may make statements which may be misleading, deceptive or wrong.
Please remember that the value of investments or income from them may go down as well as up and that the past performance of an investment is not a guide to its performance in the future.
The discussion boards on this site are intended to be an information sharing forum and is not intended to address your particular requirements.
Whilst information provided on them can help with your investment research you need to consider carefully whether you should make (or refraining from making) investment or other decisions based on what you see without doing further research on investments you are interested in.
Participating in this forum cannot be a substitute for obtaining advice from an appropriate expert independent adviser who takes into account your circumstances and specific investment needs in selected investments that are appropriate for you.