Tree2tree wrote: For those who have limited time to read independent commentary, please feel free to skip to the last 2 paragraphs.
Please pass on to Ark, who has Tree on ignore but still finds it necessary to reply to his analysis of SNV. (Not sure why so many people here take time to reply to a 'basher' if the stock is going to explode next week.)
"Our new CEO raised funds once to fund the completion of the RR."
Talk about stepping in your own doodoo, Ark. The ceo's actual words back in April 2021 were "
Sonoro intends to use the proceeds of the funding for third party technical studies to improve the geological and reservoir model of the Pematang reservoirs within the Selat Panjang project area in Sumatra, Indonesia and general working capital purposes." So, um, where are those technical reports? There are none, 18 brilliant months later. And no explanation, not even some sort of lame excuse like Covid. If you look closely at SNV's official reports, not a penny was spent on technical studies. In fact, the money was used simply to keep the lights on at SNV, with absolutely no progress made on technical studies or any other material investment. The ceo's words were just promotional bee-ess to suck in gullible investors, including those who continue to believe in next Monday.
Actually SNV did drop a little clue in October 2021:
"As previously reported, in late 2020, Sonoro commenced the evaluation of the reserves and resources of the BSR area of the Selat Panjang PSC. Until Sonoro has resolved the commercial and operational issues with SGE and SKKMIGAS, further completion of this work and its results are on hold." Hmm.. those darned "outstanding issues" that have kept SNV stuck in the mud for years now. More on that below.) (Btw, in the same release the ceo says: "Sonoro also reports that it is exploring potential participation in various other oil and gas projects in Indonesia and SE Asia. Under the direction of Sonoro’s new President David Kirk, the Company continues with the process of assessing opportunities that fit Sonoro’s strategy and plans." How's that one going a full twelve months later? Maybe Ark has some news, or can offer excuses for the ceo.)
"A large part of the raise was taken by management." Give them a little credit for that. But the choice was, put in some of their own cash or the company goes bankrupt, along with all their shares, salaries owed etc. You can also look at the issue another way: why were serious oil investors not interested in funding SNV's studies? Maybe because they knew there wouldn't be any, or they wouldn't get SNV out of the hole that it dug for itself. And you can bet that a good part of the financing found its way back into the pockets of management, so in the end it cost them much less, or maybe nothing at all.
"In his tenure, our Indo partner re-engaged and signed a MOU." So says the press release (cough, cough). I have explained before why I think the MOU is just a head fake, that will not be enforceable and will not stop the partner from strangling SNV. The same news release that talks about the MOU also says "
We are re-engaging with our partner after a period of little contact during the covid restriction period and collaborating to resolve any previous issues that have stalled the progress of the PSC." Ignoring the embarrassingly stupid line about Covid, this is a slimy way of saying that the the "outstanding issues" that the fresh new ceo promisded to resolve in April 2021 are still there, they have not gone away. What are these outstanding issues, and why won't the company disclose them? Because it wouldn't sound great to say that "our partner wants us dead." Did the MOU change this? No. How do I know? Because SNV's latest quarterly report, dated August 2022 (two months after the MOU) confirms that the partners are still enemies, and nothing has been agreed that will give SNV a stake in any oil production (look it up yourself).
Did Ark forget any "accomplishments" in the past 18 months? How about this one from October 2021: "PT Sumatra Global Energi (“SGE”), Sonoro’s joint venture partner of the Selat Panjang Production Sharing Contract (“PSC”) has advised Sonoro, via Asiavest Trust, Sonoro’s Trustee representative company in Singapore, that Sonoro is in default of the Convertible Debenture and Loan for approximately $1.6 million and $300,000 respectively and that SGE requests release of Sonoro’s 25% interest in the PSC to SGE." Brilliant work by the ceo to reach this milestone. Is this what some pumpers mean by "execution", eg by guillotine? Does anybody here read SNV's financial reports, to see that SNV itself has officially written off the value of its share of the PSC to zero? In other words, SNV has no remaining interest in any oil assets in Indo. But that was a year ago, what's the situation now? Does the MOU reinstate SNV's interest? No. SNV's quarterly report of August 2022 does not reinstate the PSC as an asset, and confirms that there is no agreement between SNV and SGE on this fundamental issue.
Having reviewed all these facts, we are now in a position to understand much better the significance of the June MOU:
- SNV committed to producing a reserves report (which they don't have the money to do, having spent the money supposedly raised for that purpose just to stay alive).
- SGE committed to NOTHING.
- SNV remains without any enforceable stake in any oil asset. Oh, and did I mention that as of June 30, SNV had $90,000 in cash; no other assets to speak of; and over $4.2 million in debt (including to previous contractors who have been stiffed by SNV). Draw your own conclusions. Will the next news, whenever it comes, be good or bad?