Sound Energy Share Discussion Threads

[steelwatch] 07/6/2018 16:49

Malcy is certainly getting carried away, LOL:

Sound Energy

The Sound machine is back up and running alright, today is day four of the assault on the RNS system as the company are back up and running in Morocco make no mistake. Today they announce a significant step in the company’s operations in Morocco with a FEED award and HOT for conditional construction and financing of all infrastructure requirements including a 20″ pipeline and facilities to commercialise the company’s existing gas discoveries in Eastern Morocco. The consortium, made up of Enagas, Elecnor and Fomento has exclusivity to finalise the funding, construction and operation of the pipeline and central processing facility under a Build-own-operate-transfer (BOOT) structure.

This is ‘a hugely important milestone for the company’ without any doubt and ‘for Sound Energy shareholders who are on the pathway to commercialising existing and future gas resources in Eastern Morocco, all without additional equity dilution’. The pipeline which at 20″ is very generously sized for potential volume increases, is intended to deliver an estimated 60 mmscf/d of gas to the Gas Maghreb-Europe pipeline system, some 120km away. The 15 year operating period, during which Sound will pay an annual fee to be agreed post the FEED and will not exceed $45m per annum after which the ownership will be transferred to Sound and its partners subject to any extension agreed by the partners.

This is certainly a ‘dream deal’ for Sound who are back and knocking the ball out of the park all over the place. The consortium looks very strong and the inclusion of Spanish distribution network owners Enagas is inspired when you look at end-market opportunities. There is now a clear line of sight on development funding for the pipeline and facilities and done with no equity dilution for shareholders. For those loyal investors who have stayed the trip, they are getting towards the commercialisation of the time and money during the exploration phase, to coin a phrase, is Sound beginning to look like a World Cup team with Schlumberger and Enagas as their star strikers?

Why not call it #deliveringdreamsinthedesert?

[a0148009] 07/6/2018 13:43

Steelwatch I agree we would not want James to get carried away on the other hand if they cannot find a buyer eg disappointing total resource ........

[dodge meister] 07/6/2018 12:50

The feed is to satisfy the existing discovery and therefore doesn't need to be huge. If the subsequent wells come in the processing plant is due to go over 200mmcf. I did think it was odd that they went with the 20inch pipe, it doesn't need to be that big for the existing discovery. I wonder if they will have a modular processing plant and they just have more of them to cover future discoveries.

[ride daice] 07/6/2018 11:42

I am a bit confused given that 60 mmscf x 365 x 15 isn't that much gas ???

[steelwatch] 07/6/2018 11:40

AO - hopefully we'll all be cashed out before delivery.

[a0148009] 07/6/2018 11:20

Any ideas how long to delivery to the Gas Maghreb-Europe pipeline system assuming
all goes to plan

"The Consortium will shortly begin front end engineering and design ("FEED") on a gas processing plant and a 20 inch gas pipeline intended to deliver an estimated 60 mmscf/d of gas to the Gas Maghreb-Europe pipeline system, some 120km away (the "Project").

In parallel with the FEED, the Consortium will finalise plans to secure access to some US$184 million of development capital that will be required to fund the Project.

Subject to the completion of FEED, and conclusion of a final BOOT contract with associated debt funding put in place, the Consortium will be responsible for the construction of the Project and for its operation for a period of 15 years. In exchange, Sound Energy and its partners will pay an annual fee to the Consortium with effect from the commencement of commercial gas production. The fee payable by the Company will be agreed post FEED but will be subject to an open book target fee calculated by reference to a target internal rate of return for the Consortium and to a 'not to exceed' fee of US$45 million per annum. At the end of a 15 year operating period, and subject to a possible extension by the parties, the ownership of the Project facilities will be transferred to Sound Energy and its partners, or to another entity appointed by the partnership, at no cost.

FEED is expected to last for some six months, following which the Company will be in a position to take the Final Investment Decision ("FID").

Upon signature of the BOOT contract, Sound Energy and its partners expect to pay a success fee to Advisory & Finance Group Investment Bank, the Company's advisor in Morocco.

The Consortium has agreed to pay Sound Energy a break fee of US$1.5 million, and to provide Sound Energy and its partners with the FEED at cost, in the event that the BOOT contract is not concluded to the Consortium's satisfaction. Sound Energy and its partners have agreed to buy out the FEED from the Consortium for US$2.2 million, should the Company elect not to proceed with the Consortium.

Today's heads of agreement is subject to approvals of the Company's partners. The final BOOT contract will be subject to both parties Board and regulatory approvals.

[jovi1] 07/6/2018 10:50

let hope this is the right time
for this to move up and hold we need volume soon

[1westham] 07/6/2018 10:42

Looks like friends are returning, it has been a long time hatching this egg.
Good luck to us all!

[dalailama] 07/6/2018 10:24

Took some, back to 90 one hopes!

[telbap] 07/6/2018 09:40

Creeping back towards 45p......nice to see blue here for a change.

[bigger is better] 07/6/2018 09:28

Great news, that's why I am buying all the way to 90p.

BIB

[a0148009] 07/6/2018 08:14

LSE announcement delay in opening market.

[steelwatch] 07/6/2018 07:55

Had to Google this 🤔

[glaws2] 07/6/2018 07:44

In the recent roadshows Parsons highlighted on of the key metrics to look for was the size of the gas pipeline which then (April) was suggested to be in the range of 12-20".

[sidarthur2] 07/6/2018 07:37

excellent negotiation

[midasx] 07/6/2018 07:28

On the surface this looks like a good deal, the pipeline and production facilities built at limited expense to Sound with a buy back over 15 years or so from production profits. Should allay some fears regarding capital raising.

Sound seem to be pretty good at getting others to pay upfront for their developmental and exploration costs!

RNS tomorrow regarding farm out of Sidi Moktar.

[gerrym two] 07/6/2018 07:20

Looks like we have moved up a gear !!

[billynotsilly] 06/6/2018 19:40

Had a little top up so onwards and upwards.

[1westham] 06/6/2018 19:03

Been around here for years, cannot wait till the longs return.
It's getting exciting tintit!

[rwells4474] 06/6/2018 07:06

RNS more news Sound Energy PLC06 June 20186 June 2018Sound Energy plc("Sound Energy" or the "Company")Tendrara: EIA Approval for TE-9 and TE-10Sound Energy, the Moroccan focused upstream gas company, is pleased to announce the approval of the Environmental Impact Assessment ("EIA") for the TE-9 and TE-10 wells at the Company's Tendrara-Lakbir permit, onshore Morocco. This approval, which covers a total of eight wells across a broad area including the TE-9 and TE-10 drilling locations under consideration, is an important step in the local permitting process and enables the Company to now finalise its preparations for the forthcoming wells.

[1westham] 05/6/2018 08:45

Now the info starts, release the beast!

[easybrent] 05/6/2018 08:30

Sound warming up the market for a capital increase?

Sound needs new cash before drilling the next Tendrara well, that is the reality if anyone reads their financial reports. They had £21m by 2017 yr end and they will have around £11m left in Sep 2018, after deducting SG&A and other cash items for the first 9 months of 2018.
There is no way Sound will go and drill the next Tendrara well with such a low cash balance and with +£20m of debt on their balance sheet.

The summer holiday begins soon in the City and it will be very difficult to do a capital increase during July and August when most bankers and investors are away. Sound, therefore, needs to raise equity in the coming week if they want a safer balance sheet before drilling the next Tendrara well. So far this week we had 2 RNS, which is clearly a sign that Sound PR machine is starting to work before announcing a placing.

Continental distribution of shares in April was an early sign that something was going on. By now must Continental shareholder will have sold out before a capital increase is announced.

My bet is a big capital increase below 35p in the coming weeks.

[ride daice] 05/6/2018 08:17

"significant inbound third party interest". Sounds interesting.