Sonoro Energy Ltd. V.SNV

SGE

[Hcgfllkp]

Per last PR, SGE is now the operator of the PSC and has 75% ownership. The MOU requires SNV to produce a detailed reserves report. Being that SNV is broke and under a mountain of debt, how difficult would it be for SGE to simply let SNV go insolvent, fail to produce the report, and claim 100% PSC ownership? My guess - not too difficult.  

[ark88]

But the fact is what you describe has been the situation for over 3 years. So why would SGE suddenly call SNV and sign a MOU in June of this year after 2 years of intransigence? Please why if what you say is plausible?

[MJB4231]

ONLY cause Migas told SGE to respect the PSC contract and quit bargaining in bad faith not too mention start producing or lose PSC as well. Contrary to many here don't realize that SNV knowledge and expertise is required for SGE to be successful

[ark88]

People do not appreciate the expertise required for oil and gas industry and how uncommon it is. Remember Bankers? It was sold to a Chinese firm and many believe the Chinese bought Bankers to learn about deep extraction. Also, many are writing off the entire Siberian oil fields with the departure of Western companies because the Russians do not possess the expertise.

[Hcgfllkp]

2 years ago, SNV was designated operator of the project. Now SGE is the operator. It would seem whatever value SNV brought to the project has been diminshed.

[ark88]

Yes that's a riddle. Perhaps you can spend some time on it and share your insights.

[MJB4231]

Ark... Are you implying a complete buy out similar to Bankers petroleum maybe happening by SGE?

[MJB4231]

https://www.newswire.ca/news-releases/bankers-petroleum-ltd-enters-into-definitive-agreement-to-be-acquired-by-an-affiliate-of-geo-jade-petroleum-corporation-572824811.html

[MJB4231]

Sorry link didn't work..... Canadas Bankers Petroleum Ltd (BNK.TO), one of Albanias largest foreign investors, said on Sunday it has agreed to be acquired by affiliates of Chinas Geo-Jade Petroleum Corp for $575 million (Canadian). Bankers Petroleum said it will be bought by firms owned by the Chinese oil and gas exploration and production company for $2.20 per share.

[ark88]

The only missing link here is that we've not been in operation, unlike Bankers before they were taken out. One has to presume that the value we bring to this venture has yet to materialize, or at least part of it

[SlyFox1]

guess question is how quickly could SNV help get Selat to production. If rigs and equipment are on site, do you think we could see a bankers style buyout by Christmas 

[MJB4231]

Sly... My take after seeing Jimmy try to hijack our PSC share makes it apparent he wants it ALL and not have any constraints of a partnership. My belief is reserve is being used part of negotiations to prove our SP valuation. I'll take 2.67 / SH.... ;))

[ark88]

No. If I'm not mistaken, Bankers were 2 years into production when the offer was received. I think they shop it around. They brought concrete value add to the resource. I would think you have to have shown production growth profile before attracting big money, which I think would mean not just reactivation of existing wells but also discovery of new areas to increase the resource. Again value

[SlyFox1]

Make sense, in Kirk we trust. Just wonder if in the current dynamic O&G market if instead of years of production growth, we could get away with a few quarters of production growth, and reserves showIng higher 2P in the previously untapped portions of Selat 

[ark88]

you're sure in a hurry. Are you planning to leave us mortals soon? I don't think so IMO. Remember the $74 mil USD expenditure over 5 years? If we're looking for a straight buyout soon then I'll stick with my $25 mil. go away fee. Otherwise, if we get a real project underway, with JOA, Work Program, SGE ownership in SNV and increased PSC ownership for SNV, then we will be much

[SlyFox1]

Cheers Ark. I'll be here for a long time, and in no rush at all. Personally wouldn't mind seeing Kirk turn SNV to a real oil company with multiple blocks under ownership once Selat gets going. Pretty sure West Kampar is still out there for tender and Budong still hasn't been picked up by anyone from what I can tell.   

[martindale]

Personally not against what you are suggesting Ark but I believe your a little low.. the known reserve that Sonoro has 25% of is $1.5 B CDN, even 5% of that is $75 Mil, your suggesting they want to sell for 1.75% ish, of the value in their share of the project? Not without a royalty guaranteed would $25 mill be near enough, Migas didn’t and isn’t letting SGE pull a fast one that’s why we got the

[StratCap]

  Solid reasoning there.  I'd be happy with $75 million on a buyout plus Migas awards SNV with a new PSC on a new block with majority ownership. One can dream.  Whats the chance of this happening NEXT WEEK? Good luck all.

[ark88]

It's the nature of the stock market I guess. Many are consumed with upside potential only. I try not to worry about the huge potential here, because I already did when I chose to buy shares. Now, I'm more concerned with downside risk and knowing that i can still make a decent return for chump change buyout allows me some degree of comfort while we wait through this dark period. GLTA!

[Tree2tree]

Ark, that is a lot of posts in one day all designed to make excuses for management.

[ark88]

Go back a year or two ago when SGE served notice, I believe, I posted a comment about the importance of knowing what SGE has been doing since the PSC award in 2019 without informing SNV. Well, it turns out they have been doing something operationally and after 2 years they suddenly call SNV then proceed to sign a MOU. Draw your own conclusions.

[MJB4231]

Crazy curious of your hypothesis as to your opinion as to why they did? If u don't want to post PM it

[copperplay]

  Ark what about rigs set up on the site and recent visits?  Can you confirm any of this ?   current stock price is for Jimmy watch and see 

[martindale]

i believe after looking at the release the way it is worded has confused a few people, JMO but, my take is that Sonoro is the operator on the selat field or what ever was designated in the original deal but the Baku field wasn’t part of the deal so SGE is the operator of that field, and likely getting advice from SNV, again just my take on it... In addition, SGE, as project operator, have advised

[Tree2tree]

Hcg, I believe you are on the right track.  But many on this board are still not willing to imagine anything but an optimistic scenario.  As if indebted, penny stock companies with failed projects never go bankrupt. My own 'feeling' is that the partner/opponent wants SNV out of the way, and they are in a very strong position to get what they want.  The scanty information

[Hcgfllkp]

Good points Tree & Subin. If Menara / Sumatra are the big deep pocket institutions they've been made out to be it would be easy for them to bring in hired guns. If SNV can't produce a reserves report they're going to be in a very weak position and (low-ball?) buy-out may be in the cards...  Interesting story regardless.