I can’t for the life of me understand how both these companies are having ‘Site Visits’ within a day of each other. So being a rather greedy news hungry individual I might as well combine my Saffron Energy site visit with the Sound Energy site visit.
It makes sense to me…. The Sound Energy site jolly is on the morning of the 9th March 2017, the Saffron Energy jolly is on the morning of the 10th March 2017. Kill the proverbial 2 birds with 1 stone and get whisked around Milan while being fed copious amounts of pasta and booze all ‘Gratis’. The drinks are on them the travel is on them and the food as well.
Any one who’s on the Saffron or Sound site visits should do the same. Contact the Saffron PR guru Mrs Stefania Barbaglio. oops I mean Miss Stefania Barbaglio of the much sought after Cassiopeia Services. (Freudian slip there) Sound Investors who wish to attend the Saffron site visit should contact Stefania either via email [email protected] or a direct call to 07949 690338. This is what I did and low and behold all my transport to the Saffron Bezzecca site visit was sorted out within 45 minutes.
Some times it’s so glaringly obvious…. Get two for the price of one!
My latest venture was a breeze. Unlike Morocco it was as smooth as clockwork. I’d been wanting to get over to Sound Energy’s (LSE:SOU) Badile drill site ever since I heard that the chance of success (COS) was somewhat higher than investors were lead to believe.
The COS is about 40%. Besides, I’d bought the Drone for Tendrara 7 in Morocco. Unfortunately, I was, as some already know, detained for 6 hours at Oujda airport. They don’t like Drones… But they do like strip searching 😊 and I’ve spent hundreds of hours practicing my flight techniques.
It’s not easy flying a Drone, least of all in a built-up area with mist…
Share-holder activism isn’t about sitting at home google searching, although it does play a part but that part is small. It’s about getting active, if that means traveling the best part of 2,000 miles to check info or look at a drill site to firm up or source information to help with an investment decision or opinion or going to company presentations, then that’s what I do. No one else out there does it. Because no one else can. People waffle, talking shite on podcasts such as Vox Markets or tweeting unadulterated spurious deliberate lies on Twitter without ever leaving the confines of their house. It doesn’t make for good decision-making processes. It inevitably leads to investment/trading failure for the majority who suck up the spiel spewed out by the Shysters.
Badile is an onshore gas play, if it comes in there’s over €2,000,000,000 (two billion) destined for the coffers of the company. I wanted to check out the site and try to see how much cash had been spent and what type of kit/equipment was in plain sight. A rough guide of the total spend for this drill is circa €25,000,000. I hate to ‘Drone’ on get it? Don’t forget to sign up for the Jekyll & Hyde Tip SheetCLICK HERE 🙂
There’s no need to go into the minutiae of Badile as I’m sure most of you already know etc. If you don’t then get researching. The economics are well known.
I had planned to fly in from about half a mile away, sadly Milan and the surrounding area was covered in mist. Visibility was about 30 metres. So, we got as close to the drill site as possible and launched from waste-land directly behind an industrial unit overlooking their acreage.
Just for clarification: the two large black swimming pool-like areas are for water catchment. The concrete boxes are for the mud used in the drill. You can see exactly where the spud is by looking at the rig. The green container-like structures are the generators and battery backups. The rest is self-explanatory, it’s a big site and believe me this is yet again a real deal. If Badile comes in it’s £3 minimum a share in my opinion. If Tendrara 8 comes in as well then £5 per share will be surpassed. The run up to both spuds could push the SP close to or over £1. An interesting point gleaned from the Milan ministry is that a blow-out preventer (BOP) is already on site and an area for gas flaring has had to be incorporated into the design. I think the square concrete footing is where the flaring will take place. It’s the furthest point away from the drill spud area. Remember there’s already gas being produced a few miles away on the same geology. Enjoy the Drone video and don’t forget to like it.
A major indication of just how Sound Oil (LON: SOU) see their future dropped today via an RNS. A predatory takeover paper offer for the distressed and shockingly managed (into the dirt) Antrim Energy (LON: AEY). You’ll all know that I am a big believer with a large personal stake in the Company. I have skin in the game. I keep telling investors that the SOU story is one of success upon success, since the boy Parsons, took the helm he and the team have turned them into one of the best AIM oiler plays of recent years. Cornerstone investors, producing assets, cash in the bank, big exploration play and a flagship gas discovery (Nervesa) about to come on stream. Not forgetting that they’ve admitted they are in talks with a Global International Oil & Gas Company regarding a Major farm-in which could lead to a creeping full blown takeover at many times their current SP.
You’ll all recall that Antrim were at one point capitalised at £250,000,000 with solid production from their Causeway asset. The board ran up huge debts on Causeway, broke all their banking covenants, Credit Suisse called in the debt and hey presto the Canadian based Board flogged Causeway in a forced firesale. To cut a long story short Antrim ended up losing Causeway for a pittance so that the Board could keep lining their own pockets. Antrim are now basically a one asset operation quasi shell valued at approx. £5 million. 90p to 3p what a ‘performance!’ If only the Sound Oil team had been in charge then I can guarantee that Antrim share-holders would be sitting pretty on a hefty value accretive investment many, many times its current value. Instead of holding crabs.
This is a great deal for Antrim shareholders as they get access to a balanced portfolio in Italy, production and exploration; Good management, cost synergies (Out goes the failed BOD Hooray!) and a credible growth story with a possible take out of many multiplies of the current SOU share-price; 10.75p. How does 60p ‘sound’ to Antrim energy share-holders? Because folks that’s what the potential gain is on Sound oil. The Offer for each Antrim share, 0.3198 new Sound Oil ordinary shares values each Antrim share at 3.44p. This values the entire issued share capital of Antrim at £6.35M.
+ Takeover of Antrim!
As for Sound they pick up a high potential exploration asset in Ireland (diversifies pre Badile outcome) and over £10M in cash, all for just over £6M worth of paper (about 13% of the enlarged company). It’s a win, win deal for ALL stakeholders.
Take a good look at Antrim’s management. Over the past 2 stretch, they’ve done nothing but destroy value for their shareholders through miss-management. When a Company are trading below cash value after running the sp into the dirt, then you know that it has failed miserably. President and Chief Executive Stephen Greer, ‘resigned’ his position then immediately ‘assumed’ the role of Chairman of the Board of Directors. (Stephen Greed!) Here’s a question for AEY shareholders. How much cash did Gree(r)d get from AEY upon his resignation? Was it 1 years’ salary? 2? 3? Because I can tell you this he got a hefty settlement! Now he gets another chunk of the Antrim cash as the Chairman! What an absolute disgrace.
The Antrim Corporate troughers whose egos destroyed Antrim, have failed to respond to the Sound Oil offer, are the very same who f**ked up the Company for their own shareholders. While raking in millions upon millions in fees for themselves. They live in Canada! They’re detached from their own share-holder base. Proven corporate failures only interested in lining their pockets with what little money is left.
The combination of Sound Oil and Antrim as an entity will have a nice balance of assets, be focused entirely on Europe while being well funded and should be interesting to institutions given the increased scale. It’s a win, win deal for all stake-holders. Consolidation is in the air I expect that Antrim are not the only company that Sound are targeting. There’s more to come. Watch this space.
As most know we do not give buy, sell or hold recommendations on Guerillainvesting, much preferring for people to research for themselves to make up their own minds. However rules are there to be broken. If confirmation was ever needed for a stock to be in your portfolio then todays RNS was it. Buy SOU up to 16p and hold.
Sound Oil (LON: SOU) have been quietly going about doing the business in Italy. The share price hasn’t really done any thing other than mainly stay static. 10.5/11p. It’s actually maintained a stable holding pattern considering the oil price has plummeted, while news has been sparse. The strength of the Company fundamentally and asset wise is reflected by the stability in the share-price. Every thing is now lined up. Cornerstone investor, two producing assets, cash revenue coming in, Italians (ex-ENI) all in place on the Board, Italian bureaucracy, streamlined, High net worth’s involved, Nervesa about to be drilled, Cash in the bank, basically debt free. Lot of maneuvering has gone on to get Sound oil to this place in time. Lift off is here.
When I say ‘sparse’ I mean the Company are deliberately tight lipped. Always a sign that they’re sat on price sensitive news and don’t want a leak to ‘outside of the tenters’ such as yours truly. A communications lock down means they’re ‘nervous on Nervesa.’
About to go ballistic
There’s a lot of news about to come through as they gear up for what the Company describe as ‘an exciting period of back-to-back drilling’, which commences with site operations at Nervesa in a matter of a few weeks or two. News has reached the blog that all is on track for a major announcement over the coming week/s. Just what that is, isn’t known. But it’s almost certainly good news, bearing in mind that the flagship asset, Nervesa is about to go ‘operational’. Once this is announced then it’s game on for the sp. It will begin to climb. I expect the sp to double in value from where it currently stands. Then we have news on the exploration play that is Badile. A massive gas play that would catapult Sound oil into the arms of a major international oil company, never to be seen again. Gone, taken over for the good of Italy.
I’ve been trying to get an interview with the boy Parsons (CEO), the man’s a difficult fish to land. Particularly as he’s a frequent flyer, flying back and forth across Europe. Last spotted having a cappuccino with an Italian energy minister. We’re not supposed to know that! It’s no wonder that Continental Investment partners (Sounds’ ‘cornerstone Investor’) have agreed to throw more cash into the hat via one of their affiliated partners Greenberry S.A. It’s money for jam for them. They know (Unlike most) that they’re going to get a hefty return on the investment. Nervesa remains a Major project for Sound Oil with an estimated NPV10 of circa US$66,000,000 million (100%). Which will probably rise.
Tight lipped.
I’ve been keeping my eye on Italy news wise. The Italian oil and gas permitting process has now been cleaned up making life a lot easier re’ the permitting process. This was announced back in late August of this year by their Prime Minister.
Remember Nervesa is a huge gas discovery, once it comes on stream the sp should be transformed. It can only go one way. UP↑. Even as the oil price struggles Sound will reap huge benefits from Nervesa which is as those in the know know, gas, which is as those in the know know, highly sought after in Italy. Premium prices being paid.
Not so ‘tight lipped’
According to one recent article “Italy is the new Texas.” With over 40 small to middle oil companies on the verge of unlocking proven oil/gas resources. Sound Oil being one of them mentioned in the same article as? ENI!
For all those familiar with the Sound Oil story here’s a quick update.
There’s a Swiss clock ticking over at Sound Oil (LON: SOU) Hot off the press and following on from the James Parsons & Director Luca Madeddu UK private investor share-holder get together, after their successful presentation at the 67th Oil Barrel, news is coming through on BMD’s black telephone that there’s a secret, yes secret, private international investor presentation in the pipeline (at the request of an Institution) to be held some where in Europe. It’s all very ‘hush, hush’. So keep it quiet. We don’t want questions raised such as? ‘Why are international investors desperate to get there Swiss franc into Sound Oil just before a potential official farm-in RNS? Do we?
These are not UK investors these are Swiss by birth. Are they private Bankers, Chocolatiers’ or makers of Swiss army knives? We don’t know, but what we do know is that It would seem this could be tied to an impending big news release on a potential International Oil Company farming-in to the huge exploration play that is Badile. This farm-in could be a Company Maker and when announced will push Sound oil stock like a juggernaut
As you all know I am a big fan of Sound Oil (LON:SOU)
I was expecting to take part in their Conference call tomorrow but news from the Company is that it’s been delayed until 24th September which coincidently is 24 hours before Sound present at the Oil Barrel Conference.
I will be attending the Oil Barrel & have with Doctor Holiday from the http://docslaymanschatter.blogspot.co.uk/ prescribed a 60 minute private investor tete a tete with the Sound oil team for 11.40am. I will be speaking to the “Boy Parsons” in my official capacity as “I hold a large chunk of SOU stock”. Tell me it’s going to treble!
These opportunities do not come along very often so I’d urge any one who wants to get ahead of the game on SOU to Email: [email protected] to be added to the meeting list.
Now far be it for me to speculate why the attention of Sound oil needs to be somewhere else tomorrow but I do believe that there’s some good news in the pipeline which has coincided with the Conference call. There is a whisper that we will get some form of “Good News” what this will be is any ones guess. Farm-in? Farm out? Another major institution coming on Board, ENI, Edison or some other Major taking a piece of SOU?
We just do not as of yet know. One thing is for sure there’s an RNS on the way.
As promised we’ve tried to keep sourcing info’ on some of the Companies that we’ve had fantastic gains on over the last few months etc. Next up Sound Oil (LON: SOU).
At the moment it looks like the SOU sp is in a holding pattern. No real movement either way at 12p ish. September could be a busy month for the Company. It’s been bandied around online that the CEO has been on his holidays and is now back progressing the Company. There’s plenty going on in the business behind the scenes, what with Nervesa approvals, Niche farm in, Badile farm in & whispers of Laura farm-in etc. We do know that, regardless of what SOU refuse to confirm or deny, that they are in talks with at least 2 Major oilers, on farm-in & potential takeover should they come up trumps on Nervesa, Badile, Laura etc.
I did actually hear that some form of ‘chat’ with Rockhopper Exploration (LON: RKH) may have gone on a few weeks ago. How true this is? I’d say 50/50. Recent news has included, the Badile land purchase & long lead items, Nervesa long lead items & well head purchase, Letter of intent with Drillmec Spa for the exclusive use of an AHEAD 375 Drilling Rig in Italy for both the SMG and Laura wells, and first gas at Casa Tiberi. This points to a Company going in the right direction.
Take a good look at the Einstein Equation pictorial. Therein lies the answer to the question we are all asking; ‘How high can they go on more positive news?’ It really is a question of perception for each individual investor. We know that Takeovers or farm-ins of Companies with world class assets, always come at a premium to the current share-price. There are many different schools of thought. Takeover; 60p, 100p, 40p, 50p, Farm-Ins; 25p 20p, 30p, 18p. One thing is very likely, they are going up towards 20p this year.
Do not be fooled for 1 minute by the Company line; ‘The aim is to make Sound Oil a footsie 250 Company’ This will never happen. They will, subject to continued success, be swallowed up.
Logic should dictate your move here. Hold for Farm-In & or Takeover News in 2014.
I can’t for the life of me understand how both these companies are having ‘Site Visits’ within a day of each other. So being a rather greedy news hungry individual I might as well combine my Saffron Energy site visit with the Sound Energy site visit.
