Share Name Share Symbol Market Type Share ISIN Share Description
Sound Energy LSE:SOU London Ordinary Share GB00B90XFF12 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +2.50p +3.33% 77.50p 76.25p 77.00p 78.75p 74.00p 75.00p 6,256,602 16:35:26
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Oil & Gas Producers 0.8 -15.2 -2.5 - 524.02

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Date Time Title Posts
26/4/201715:30SOUND ENERGY PLC ►►►Focussed on the Mediterranean Area11,503.00
25/4/201715:26SOU - Sound Oil plc24,704.00
19/4/201711:08Plenty in the pipeline for Sound Energy (SOU:AIM) Cantor Fitzgerald 175.00
08/4/201712:40Sound Oil technical target towards 18p9.00
08/4/201712:27new winner15.00

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2017-04-26 16:11:2377.5027,00020,925.00O
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DateSubject
26/4/2017
09:20
Sound Energy Daily Update: Sound Energy is listed in the Oil & Gas Producers sector of the London Stock Exchange with ticker SOU. The last closing price for Sound Energy was 75p.
Sound Energy has a 4 week average price of 63p and a 12 week average price of 63p.
The 1 year high share price is 102p while the 1 year low share price is currently 15.25p.
There are currently 676,149,597 shares in issue and the average daily traded volume is 9,075,925 shares. The market capitalisation of Sound Energy is £524,015,937.68.
18/4/2017
13:58
lowflow: Big question marks ahead The TE-8 well has not turned out to be the homerun, the market was hoping for. Its now been 20 days since Sound announce the result from TE-8, but with the caveat that they don’t have the full result until the cores from the well has been analyzed. We have had a few RNS since the TE-8 results announcement but neither of these announcements has given any incremental information about the TE-8 results. The company has 1.117bn shares in issue after the OGIF deal and including all warrants and options, that equates to a market cap of £770m or $961m. To justify this market cap Sound needs to find considerably more than the 300-500 bcf of gas in place they found at the core of Tendrara. Sounds owns 47.5% of this discovery. The expected recovery rate is 65%, which means that the net recoverable resources to Sound is 92-154 bcf or 15-26m boe. At the current share price the market is valuing this resources to $37-63/boe, which makes these resources to some of the most expensive on the market, assuming that Sound isn’t discovering any additional resources. The last weeks RNSs creates several questions marks to the Sound story. The issues began to arise when TE-8 didn’t come in like most shareholders had hoped for. Before TE-8 was drilled the game-plan was something like this: -> Drill TE-8 and prove up 1.5 TCF and prove up the Paleozoic -> Re-entry TE-1 and prove up 3-4 TCF -> Commission the CPR report which would put a more precise value on the 3-4 TCF, which would more than justify the current share price. -> Complete the large seismic program over Tendrara. The result from the seismic program would give a more precise picture of the size of the various prospect. And a path to the possible multiple TCF asset. This game-plan seems to have been knocked of the road since the completion of TE-8. -> TE-8 didn’t not turn out to be a homerun. The TAGI was tight and the Paleozoic seems to be a tighter rock as well. The results seem to be so inconclusive that 3 weeks in the lab has not been enough to decide what they have found. Maybe they should have sent the samples to CSI for a full forensic study instead! -> Todays RNS shows that there are big questions marks if and when the TE-1 well will be re-entered, as the rig is sent to Sidi-Moktar. The company has in the past said that its was of the highest priority to re-entry TE-1 if TE-8 was a success. -> It seems like the most likely scenario is now that Sound wants to completed the seismic program over the Tendrara block before they will drill additional wells. From an industrial perspective, it makes sense, but from a hyped AIM stock perspective its killing the equity story for many months to come. If this is the case it could very well be that Sound wont re-entry or drill anymore wells in the Tendrara block in 2017. Today’s RNS creates additional question marks when it comes to Sidi-Moktar. In the 2016 Annual Report, which came out 6 days ago the company wrote the following: Page 23 “In accordance with the Heads of Terms announced on 10 March 2016, Sound Energy’s effective interest in Sidi Moktar is expected to reduce to 25%, with the Company carried for the first $18m gross capital expenditure invested in the licence.” In todays RNS, Sound mgmt. explains that the company is so well capitalized that they don’t need to farm-out Sidi-Moktar. This seems a little bit odd as they 6 days ago thought it was a brilliant move to financially de-risk the asset by farming it out. Maybe James realized over the Easter Holiday, while eating some Chocolate Cupcakes that, hey we got plenty of cash in the bank lets not farm-out Sidi-Moktar. Lets not get into how this incremental spending adds up with the announcement of a share buyback 6 days ago. Today’s RNS, seems also to be an attempt to create some hype over the Sidi-Moktar asset, James or his assistant or someone else has over the long weekend managed to dig out a report from 1998 saying that someone at that time thought the block could hold 9 TCF. If I would be a guessing man I think James will continue this path and try to refocus investor interest on Sidi-Moktar when he will do his webcast next week. Nothing wrong with spreading some light on Sidi-Moktar but it probably tells you that Tendrara isn’t going to turn out to be the discovery of a decade as James has been talking about, at least not in the near future.
10/3/2017
08:01
hpotter: Cantor Fitzgerald Europe Research Morning Equity Note Sound Energy (BUY) – TE-8 reaches final casing point SOU LN (81p, TP 94p from Under Review), Market Cap: £586m Our view: Sound has announced that its third Tendrara well, TE-8, has now been drilled to the third and final casing point at a measured depth of 2,603m and that the 7" liner is being set and cemented in the TAGI II formation. The well is now approximately 2m from the target TAGI reservoir. The company will now proceed to drill the main well bore to the final true vertical depth of approximately 2,977m. The TE-8 well is a step out appraisal well c.12km to the North-East of TE-7 with the objective of proving up significant additional volumes in the TAGI reservoir whilst also, for the first time, drilling deeper into the Paleozoic formation. Success at TE-8 could lead to a further re-rating in Sound’s valuation in our view. Following the company’s proposed acquisition of a further 20% in Tendrara (for 272m of new ordinary shares), we believe the company’s valuation will be more heavily geared to success or failure at this key well. We update our valuation to take account of the proposed share dilution and increased working interest in the company’s Moroccan asset base. We therefore reiterate our BUY rating, with an updated target price of 94p from Under Review. · All paper consideration will be highly dilutive - The consideration for the acquisition will be the issue 272m new ordinary shares in Sound, representing c.29% of the company's enlarged issued share capital. At the last close (93.5p/share) the consideration has an implied market value of approximately £254.3m. Overall, we believe this deal makes a lot of sense for both counterparties. It allows Sound greater direct exposure to a key geography in its portfolio, an area which has so far created significant shareholder value of the past 12 months. It also allows OGIF to retain an indirect interest in the assets, with an opportunity to monetise its position through the sale of Sound equity if it wishes to do so. We do sight the potential risks on the downside however, if TE-8 proves to be unsuccessful, which if is the case, this deal could prove to be highly dilutive for existing Sound shareholders. · Attractive entry point - We believe that Sound has sufficiently grown its acreage position to become a material player in Mediterranean gas. The company is benefitting from attractive and robust pricing fundamentals which have served to boost project economics. With a number of event driven catalysts on the horizon, supported by a robust financial position, and a funded 2017 drilling campaign, we see Sound’s current share price as representing a compelling entry point for investors. We therefore retain our BUY stance and set a new TP of 94p (from Under Review). · Risks – Geological risk, exploration risk (Badile), Government risk (Italy). Sam Wahab | Oil & Gas Research | 020 7894 7539 | swahab@cantor.co.uk
10/2/2017
17:00
brookemia: Question and Answer to James yesterday, and just received answer guys, happy to share! Morning James, Hope today is going well and everyone close to you is hale and hearty. I was wondering if I might elicit an answer to a question that has been going around my head, and other investors. Sound is comprised of four elements,3 being in Morocco and Badile. If-after TE8 and further drilling/successful assessments/CPR, the share price went to £x per share. A would be suitor says, we should like to buy out Sound in Morocco and offer £XXXXXXXXXX, and Sound says yes, and the share price went to £xx per share, how would the remaining Badile investment apportionment be judged? In essence James, I am asking if there is/will be an apportionment of nominal MCAP per element or in Morocco/Italy ? Hello Alan and Wendy. Thanks for your question.  Let me try to explain.  Were someone to offer Sound to purchase it’s Moroccan asset and Sound accept the deal then Sound would exchange the asset for cash.  The effect on the share price would theoretically be nil if the market perception of value of the asset was the same as the cash received.  The Company could then chose to distribute the cash to shareholders in a tax efficient manner.  Once the cash was distributed the share price should fall by the amount of the cash distributed divided by the number of shares in issue (although shareholder would be indifferent as they would hold the cash plus the shares).   This is a rather theoretical question of course but I hope the logic makes sense. James
16/12/2016
16:29
brookemia: Is now the time to buy Sound Energy? Share 11:02 15 Dec 2016 With a number of event driven catalysts on the horizon, supported by a robust financial position, and now a funded 2017 drilling campaign, we see Sound’s current share price as representing a compelling entry point for investors - Sam Wahab. Sound has sufficiently grown its acreage position to become a material player in Mediterranean gas, the analyst said The current share price represents an attractive entry point for would-be investors in Sound Energy (LON:SOU), the gas exploration company focused on Morocco and Italy.   That, at least, is the belief of Sam Wahab, analyst at Cantor Fitzgerald.   The shares, down 5% at 68p in morning trade, are worth 103p, according to the Cantor number cruncher.   READ - Sound Energy primed to drill new well; reveals internal estimates for Morocco READ - Today's announcement in full   Wahab’s call on the stock followed an update on drilling plans and publication of its first internal estimates of the scale of its Tendrara gas asset in Morocco.   “We believe that Sound has sufficiently grown its acreage position to become a material player in Mediterranean gas,” the analyst said in a note to clients.    “The company is benefitting from attractive and robust pricing fundamentals which have served to boost project economics.    “With a number of event driven catalysts on the horizon, supported by a robust financial position, and now a funded 2017 drilling campaign, we see Sound’s current share price as representing a compelling entry point for investors.”   For finnCap’s Dougie Youngson, who rates Sound a ‘buy’ up to 87p, one of the major potential ‘dial movers’ is the results from extended well test on latest well at Tendrara.   “The purpose of this is to confirm the sustainability of the initial flow tests seen during the current work programme,” he said. The latest from Sound  Earlier, Sound provided some guidance on the potential scale of  Tendrara licence.   Currently, the Sound team reckon there is between 300bn and 500bn cubic feet of gas in place based on the work carried out to date.   The next well, a step out some 12 kilometres from the last hole, will test the lateral extent of the gas accumulation.   If it successfully finds gas at commercial rates via TE-8, then the estimate for Tendrara rises to up to 1.5 trillion cubic feet in place.   In a release to the stock exchange, Sound provided an update on the next well, where work is slated to start in February.   It will test the TAGI reservoir as well as tapping for the first time the lower lying Palaeozoic horizons.   Sound also confirmed it had retrieved memory gauges from its last hole, TE-7, that confirm “the reservoir pressure correlates with the gas gradient recorded at all previous wells on the structure”.
15/12/2016
12:49
steelwatch: Is now the time to buy Sound Energy? 11:02 15 Dec 2016 With a number of event driven catalysts on the horizon, supported by a robust financial position, and now a funded 2017 drilling campaign, we see Sound’s current share price as representing a compelling entry point for investors - Sam Wahab. The current share price represents an attractive entry point for would-be investors in Sound Energy (LON:SOU), the gas exploration company focused on Morocco and Italy. That, at least, is the belief of Sam Wahab, analyst at Cantor Fitzgerald. The shares, down 5% at 68p in morning trade, are worth 103p, according to the Cantor number cruncher. Wahab’s call on the stock followed an update on drilling plans and publication of its first internal estimates of the scale of its Tendrara gas asset in Morocco. “We believe that Sound has sufficiently grown its acreage position to become a material player in Mediterranean gas,” the analyst said in a note to clients. “The company is benefitting from attractive and robust pricing fundamentals which have served to boost project economics. “With a number of event driven catalysts on the horizon, supported by a robust financial position, and now a funded 2017 drilling campaign, we see Sound’s current share price as representing a compelling entry point for investors.” For finnCap’s Dougie Youngson, who rates Sound a ‘buy’ up to 87p, one of the major potential ‘dial movers’ is the results from extended well test on latest well at Tendrara. “The purpose of this is to confirm the sustainability of the initial flow tests seen during the current work programme,” he said. http://www.proactiveinvestors.co.uk/companies/news/170536/is-now-the-time-to-buy-sound-energy-170536.html
12/12/2016
10:38
ngms27: A tale of woe 22nd October 2015 MPE Heads of terms Under the heads of terms MPE has agreed, subject to contract, to grant Sound Energy an option to purchase MPE's 25% carried working interest in the Sidi Moktar Licences for a price of Euro 1.00 at any time up to first commercial gas from a Sidi Moktar Licence (the "Option"). On grant of the Option, the Company will issue MPE with new ordinary shares in the Company with a market value of £3,576,000. The Company will also pay MPE a 1.6% net profit interest in any future cash flows from the two existing wells of the Kechoula discovery. Share price on the 21st October was 16.75p 14th January 2016 MPE Farmout n consideration for the acquisition, Sound Energy will, on completion of the acquisition, issue MPE with 21,764,706 new ordinary shares in the Company and grant MPE a 1.6% net profit interest in any future cash flows from the Kechoula discovery. The acquisition, which remains subject to conditions precedent including regulatory approvals, follows the Company's announcement of 22 October 2015, in which the Company announced that it had entered into heads of terms with MPE (the "Heads of Terms") in respect of an option to acquire MPE's interest in the Sidi Moktar Licences. The option structure was subsequently deemed unnecessary as, with the consent of the Operator in the Sidi Moktar Licences, the Company was able to directly acquire MPE's 25% interest and maintain the carry currently enjoyed by MPE. Share price on the 13th January was 17p 26th January - PetroMaroc Heads of terms On completion of the Acquisition, Sound Energy will issue PetroMaroc with new ordinary shares in the Company with a market value of £3,650,000 and will grant PetroMaroc: (i) a 10% net profit interest in any future cash flows from the Kechoula discovery; and (ii) a 5% net profit interest in any future cash flows from structures within the Sidi Moktar Licences other than the Kechoula discovery. Closing price on the 25th January was 16.38p 10th March 2016 - Aquisition and Farmout Further to the Heads of Terms announced by the Company on 26 January 2016, the Company has now signed a binding agreement to acquire, subject to regulatory approvals, PetroMaroc's 50% working interest in, and operatorship of, the Sidi Moktar Licences (the "Acquisition"). On completion of the Acquisition, Sound Energy will issue 21,258,008 new ordinary shares in the Company to PetroMaroc as consideration and will also issue PetroMaroc: (i) a 10% net profit interest in any future cash flows from the Kechoula discovery; and (ii) a 5% net profit interest in any future cash flows from structures within the Sidi Moktar Licences other than the Kechoula discovery. These terms are identical to those announced on 26 January 2016. Closing price on the 9th March was 17p So the whole farmout was meant to cost £7,226,000 and Sound to have MPE's 25% carry. What we actually got was a cost of 43,022,714 shares with 50% above 50p being payable to Sound. That works out using todays price of 73p at £26.45m Then to make matters worse we give 66% of our 75% away for $6m cash and a $4.5m carry. So in pound terms we have paid £26.45m for an asset then sold 66% for £8.34m. This infers we paid at least 60% too much. So to summarise we have paid well over the top for distressed assets and then give them away. How ever you look at it one has to question James deal making in this instance. Lets hope it's not a white elephant OR that the existing farmout is reenaged upon for a better deal for share holders. #destroyingvalueinthedesert
22/9/2016
11:16
zengas: For anybody looking at Sound you have to make your own investment choice - I personally don't worry about daily/weekly flutuations. I bought Sound for what they are saying/partnership with Schlumberger and for being a potential multi-bagger that may or may not be off the scale and getting in relative to what i beleive covers the share price for minimum downside. Cove Energy evolved out of Lapp Platts (not dissimilar to the old Sound Oil) with previous LP holders seriously diluted and on 29th June 2009 raised £4.2m at 12p to look for assets. On 18th September 2009 Cove (old Lapp Platts) bought into the Artumas Group assets who had previously been involved with the Mozambique Rovuma acreage and this is where Cove embarked on their journey with a placing to buy into the assets at 20p diluting the old LP holders even further. I bought in at around 21p and was immediately down over 25% but with ongoing success it was eventually sold for 240p (£1.22b). It was only after the 1st Cove/partners discovery (not flow tested nor were any until the 8th well was drilled) that the scale of the potential opportunity was envisaged - so in that context it is not dissimilar as to what Sound/Schlumberger is suggesting now and why i've obviously been attracted to it. Whatever it is about their new data/evaluation, it has changed their upside outlook. When you look at the Cove or IEC charts - easy looking back in hindsight I know, posters questioned valuations, needing cash etc capability of John Craven at Cove, some criticised his manner/dealing with staff/investors etc - route to markets if any, one institutional outfit sold out early on and that came in for criticism and of course 3 Cove directors never bought more than 50-70k shares between them from day-1 during the entire life of the company. More than enough to weigh on sentiment. So the moral for me is that's it's not any different here now with peoples perceptions at Sound - but now that we know they have indicated that 5-10 Tcf upside on Tendrara alone is potentially not going to cut it (never mind Badile, Sidi-Moktar, Meridja and the other assets) then bear in mind the potential value on offer way ahead of the current share price if Sound/Schlumberger continue to deliver regardless of what the share price does on a daily/weekly basis. Imo in the coming year Sound could well have significant production revenue which Cove did not have. Similarly IEC 25p to an eventual 1250p buy out ($2.4b) just over 3 years later had similar debate. Imo just let the company deliver on appraising the scale of the asset if it exists to such an extensive giant or super-giant scale. With the values attributed to the gas, tax holiday, pricing etc that's why imo the CEO hinted at potentially a 4 figure share price. Maybe people can't fathom that, there were plenty who couldn't imagine it at Cove or Imperial along the way and when a share price is already up 4-500%, its sometimes beyond peoples thinking that it could be only at a fraction of its true potential - and this is what the CEO has said regarding his description of don't see us as to how far we've come but potentially how far we have yet to go. It will only become apparent to the real potential if success continues to come in and there will be buyers, sellers, traders, margined players etc along the way. What i see is that there has been gas over a very, very wide area (7 out of 8 wells now) that could indicate giant or super giant possibilities. Whether we get that 4 figure share price or not even with significant discoveries I don't know given the potential for the company to become a takeover target, but if more of the the gas is there then the value should increase and bear in mind where it sits relative to Europe and high value markets. If it's not important why are Shell, ENI etc all there ? You won't see any vertical lines here. Cove Energy and Imperial Energy html charts with their peaks and troughs. http://uk.advfn.com/p.php?pid=charts&;symbol=L%5ECOV http://uk.advfn.com/p.php?pid=charts&;symbol=L%5EIEC
10/9/2016
18:10
250swb: 67 days that changed our World: I thought it might be worth recapping on some recent events: and when reading it, I ask you to bear in mind one thing: this number and level of updates was from one VERTICAL well discovering 28 metres of nett pay we are now drilling its horizontal (ie bigger) brother at TE7, we are drilling it WITHIN the identified pay zone and we are pregnant with news if Sound can produce RESULTS / RNSs / info feed like this from one vertical, I can't imagine what they might be able to do with a horizontal: on 2 June 2016 SOUND issued an RNS announcing significant gas shows at TE6 Sound Energy plc ("Sound Energy" or the "Company") Tendrara: Completion of Drilling Sound Energy, the European / Mediterranean focused upstream gas company, is pleased to announce that the first Tendrara well has now been drilled to total depth ("TD") at a measured vertical depth ("MVD") of 2,665 metres. The 4 1/2" tubing is now being set in preparation for testing the well. The Company has identified the TAGI reservoir starting at a depth of 2,535 metres MVD, some 12 metres structurally higher than that identified in the previous TE5 well. The Company therefore believes it has successfully drilled the top of the structure, confirming the geological depositional continuity of the TAGI sandstones within the area. The Company identified significant gas shows whilst drilling the reservoir and the full set of acquired logs will be now processed. The Company confirms that a total gross pay of 89 metres has been identified. The rig will now de-mobilise from the TE6 location and move to the already prepared TE7 site on stand-by. Immediately after de-mobilisation, the Company will proceed with the planned rigless operations to mechanically stimulate the reservoir followed by a well test. ----------------------------------------------------------------------------------- 18 days later on 20 June 2016 they announced 28 metres of net pay there they also announced they were exercising the option over Meridja, I reckon that timing was/is VERY significant on a scale of significant things running from 1-10, I reckon its about 50+ Sound Energy plc ("Sound Energy" or the "Company") Tendrara and Meridja Update Sound Energy, the European / Mediterranean focused upstream gas company, is pleased to provide the following update. Tendrara The processing of the logs while drilling and wire line logs at the first Tendrara well has now been completed. The preliminary petrophysical analysis confirms the presence of a number of gas bearing levels and a total net pay of 28 metres in the TAGI reservoir. This is ahead of initial expectations. A further announcement will be made following the completion of operations and when the results of the well test are confirmed. In anticipation of drilling of the second well at Tendrara, the Company has now applied for the first complementary period under the licence terms. This period triggers a commitment to a second well. Meridja The Company is also pleased to announce that it has now exercised its option to acquire, subject to regulatory and other approvals, a 55% participating interest in the Meridja exploration permit, onshore Morocco, from Oil & Gas Investment Fund S.A.S. (the "Option"). The consideration payable and the other terms of the Option were announced by the Company on 8 February 2016. The Meridja licence area is adjacent to the Tendrara licence and is a highly prospective 9,000 Km2 area with the same fundamental geology as Tendrara. The Company continues to pursue its counter-cyclical growth strategy and to evaluate selective opportunities to complement its existing portfolio. ----------------------------------------------------------------------------------- 21 days later , on 11 July, we had an RNS announcing stable flow rate from perforation of only 5m of the total pay: 11 July 2016 Sound Energy plc ("Sound Energy" or the "Company") Tendrara Update Sound Energy, the European / Mediterranean focused upstream gas company is pleased to provide the following update in relation to the Company's Tendrara licence area, onshore Morocco. As announced by the Company on 6 June 2016, the first Tendrara well (TE6) was drilled to a measured vertical depth of 2,665 metres and encountered approximately 28 metres of net gas pay in the TAGI reservoir. The Company confirms that rigless operations continue and that the results are already significantly above Company expectations as a significant stable flow has already been achieved, despite only having accessed so far 18% of the total reservoir and no stimulation having yet been performed. After completing the initial perforation of 5 metres of the 28 metres of net pay (between 2,601 and 2,606 metres) the well achieved a stable flow rate of 1.36 MMscf/d with a choke of 16/64". The Company will now complete the remainder of the rigless operation, after which the results will be announced. The results are expected later this month. James Parsons, Sound Energy's Chief Executive Officer, commented: "I am absolutely delighted to report what appears to be an early and potentially very material success at the first of our three Strategic Plays. We eagerly await the post stimulation flow rate but I believe the early results of this first well already both prove a material commercial rate at Tendrara and provide significant early clues as to the regional potential of the Eastern Morocco TAGI reservoir." This announcement is inside information for the purposes of Article 7 of Regulation 596/2014 ----------------------------------------------------------------------------------- 7 days later ,on 18 July 2016, they issued TE6 update RNS to advise us that we already had highly commercial flow rate Sound Energy plc ("Sound Energy" or the "Company") Tendrara Update Following the recent share price increase, Sound Energy, the European / Mediterranean focused upstream gas company, is pleased to update the market on continued positive developments at the Company's Tendrara licence. The Company continues with rigless operations and, having now secured contact with a significant portion of the net pay, is pleased to announce that it has already achieved a very significant gas flow rate which is in the process of stabilising during the clean up process. The rate is already highly commercial and well above initial expectations. The Company will now finalise the rigless operations and make further announcements, as anticipated, within approximately two weeks time. This announcement is inside information for the purposes of Article 7 of Regulation 596/2014. ----------------------------------------------------------------------------------- 21 days later on 8 August we got THIS RNS with blockbuster news: 8 August 2016 Sound Energy plc ("Sound Energy" or the "Company") Tendrara: Gas Discovery And Potential Single Gas Column Sound Energy, the European / Mediterranean focused upstream gas company, is pleased to confirm a significant gas discovery and a potential single gas column at the Company's Tendrara licence, onshore Morocco. As previously announced by the Company, the first Tendrara well, TE6, was drilled to a measured vertical depth of 2,665 metres, encountered the top of the structure and approximately 28 metres of net gas pay in the TAGI reservoir. The Company has now completed operations and is delighted to announce that it has on 7 August 2016 achieved a stabilized gas flow rate, post stimulation, of 17.0 MMscf/d (0.5 million scm/d). This is significantly above initial expectations and represents a highly commercial rate. The Company is also very pleased to report a reservoir bottom hole pressure of 420 bars and that the static pressure recorded in the well correlates, in terms of gas gradient, with all of the wells previously drilled in the licence area. The combination of these factors together with the fact that none of the historically drilled wells on the licence have identified a gas/water contact, suggests the possibility of a significant gas column within a continuous extended structure. This structure may include and extend beyond the reservoir identified at TE2, some 30km to the North East. A further well (the Company's third well TE8) will be required at the edge of the potential structure to confirm this and is now being planned for later this year. The Company, together with Schlumberger, is now preparing for the second well at Tendrara (TE7, located approximately 1.3km from TE6) using subhorizontal drilling techniques which are expected to significantly increase the individual well flow rate in a success case. This will be followed by an extended well test. The rigup process at TE7 is already complete and drilling is expected to commence during August 2016. TE6 will be suspended until the results of TE7 are confirmed, at which point the Company expects to apply for a production concession and commence detailed engineering for construction of the necessary infrastructure, which Oil & Gas Investment Fund (OGIF), one of the Company's partners, has already indicated an interest in funding, constructing and operating. The Company has a net effective interest of 27.5% in the Tendrara licence. This announcement is inside information for the purposes of Article 7 of Regulation 596/2014.
07/9/2016
09:02
zengas: telbap if they were producing at 17 mmcf/d it would be over half of the 30 mmcf/d figure i used below in my post 2480 on 1/9/16, it may give a net back of $14m/yr net to Sound. ZENGAS 01Sep 2016 - 2480 On the point of Sound Energys' tweet yesterday confirming an executive strategic planning session next week in Morocco - going back to the May interview, the CEO stated $12/mcf for gas (ie $72/boe). Given that there's a 5% royalty and a 10 year tax holiday and after opex, the net backs must be over $8/mcf or $48/boe hence why every gross 1 TCF is worth £1/net to the SOU share price. Fastnet quote was that Tendrara wasn't understood by investors but was completely derisked as far as the gas being there. Their expectation from the TE-5 area was 1.4 TCF gas in place with 900 bcf recoverable - so on that alone, we may be just shy of the 1 TCF regardless of the SBK discovery or the tighter gas at TE-2, or the discovery on Sidi Moktar awaiting testing. On the basis of TE-7 also being a producer, how soon then until we become a major producer in the following quarters given the proximity of infrastructure ? (hence perhaps why there's a strategic planning session next week). A gross 30-60 mmcf/d of production @ 27.5% to SOU = 8.25 - 16.5 mmcf/d @$8/mcf net backs = $25-$50m/yr profit which would provide very significant funding as the company continues to grow and delves into the other licences as well as the deeper potential of Tendrara and the additional 60 TCF of potential shale gas. Imo, with near term Moroccan production potential, the company is going to look even more attractive and makes the current valuation appear very much underpinned against multiple upside potential.
01/9/2016
11:10
zengas: On the point of Sound Energys' tweet yesterday confirming an executive strategic planning session next week in Morocco - going back to the May interview, the CEO stated $12/mcf for gas (ie $72/boe). Given that there's a 5% royalty and a 10 year tax holiday and after opex, the net backs must be over $8/mcf or $48/boe hence why every gross 1 TCF is worth £1/net to the SOU share price. Fastnet quote was that Tendrara wasn't understood by investors but was completely derisked as far as the gas being there. Their expectation from the TE-5 area was 1.4 TCF gas in place with 900 bcf recoverable - so on that alone, we may be just shy of the 1 TCF regardless of the SBK discovery or the tighter gas at TE-2, or the discovery on Sidi Moktar awaiting testing. On the basis of TE-7 also being a producer, how soon then until we become a major producer in the following quarters given the proximity of infrastructure ? (hence perhaps why there's a strategic planning session next week). A gross 30-60 mmcf/d of production @ 27.5% to SOU = 8.25 - 16.5 mmcf/d @$8/mcf net backs = $25-$50m/yr profit which would provide very significant funding as the company continues to grow and delves into the other licences as well as the deeper potential of Tendrara and the additional 60 TCF of potential shale gas. Imo, with near term Moroccan production potential, the company is going to look even more attractive and makes the current valuation appear very much underpinned against multiple upside potential.
Sound Energy share price data is direct from the London Stock Exchange
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