It’s been a long time in the planning and it’s cost a few bob, but when a private group of investor friends are looking to take a substantial position (substantial for us) in a company one has to ‘Get Busy’ that is to say you find out exactly if the company you are potentially investing in is an actual ‘Real Deal’ or just ‘Hot Air’. The Alternative Investment Market (AIM) is littered with lifestyle companies whose CEO’s are nothing other than corporate frauds. They use PR spin, bent Brokers, Shysters & glitzy girls wearing flashy sashes wrapped around hour-glass figures at events that are nothing other than organised pump & dump seminars, singing sweet tunes of untold riches which never come to fruition while filling you with free booze. We here don’t do that we get the information not from the companies but from our own research. Guerrilla Investing is totally independent. This article may piss off some within the Company and security will be beefed up. But the cat is now out of the proverbial bag. WATCH THE VIDEO OF MY TRIP BY CLICKING HERE
Most investors are constantly befuddled with incomprehensible guff, perpetually churned out online from self proclaimed (clueless) market ‘gurus’, surreptitiously recruited. The continual blogging, podcasting and tweeting of utter shite, which is at complete odds to the known facts and historical performance, always leads to most losing their ‘deposit’. It’s a transference of wealth from the ‘gullible’ to the not so gullible, i.e. The various corporate hyenas who feed off retail investor flesh. So it is with great delight that I write this piece on a company that is a 100% genuine oil & gas play. You have to go the extra mile or in this case 3600 miles. Manchester to Tendrara and back. Sound Energy (LON: SOU). What we’ve seen and what we’ve discovered.
We here at guerrilla investing do have our moments of madness. The trip wasn’t without its drama and risk. I was detained at Oujda airport for many hours, strip searched, with all my camera and video equipment confiscated because I hadn’t got the correct permissions to bring said equipment into Morocco. Suffice it to say the ‘securitate’ were, in general, not unpleasant and all equipment was returned in tact upon my exit of the country. It did complicate things but being ever inventive we reverted to the ‘Heath Robinson’ school of problem solving.
I urge investors and traders, to take a good long look at the video compilation, article photos and digest the solid information reliably sourced from the ‘field’ that two days of sneaking around Sound Energy’s sub Saharan Moroccan gas play has revealed. I’ve no doubt whatsoever that Sound Energy are the ‘Real Deal’ and that Tendrara 8 (TE8) will discover gas. It is nailed on. It is the volume of gas that is unknown.
Seven hours of Keystone cop driving, passing numerous Gendarmerie check-points with many wrong turns eventually got us to where we had to be. The site is accessed via a 10 kilometre road that has been carved out of the desert. There’s also a water pipeline of circa 9 kilometres connecting all the Tendrara drill sites and the accommodation blocks/camp. I did notice internet relay stations stretching out over vast distances. I also located the Sound Internet relay which has been constructed. One point of interest is that there’s a police outpost on the camp protecting the drill sites. Getting close to the drill sites during the day was nigh impossible so we circled the acreage staying well away. We decided that the best chance of getting the pics/footage would be to come down from the hills in the night time. We crept around all night taking hundreds of shots with video footage. As the night wore own we managed to get ever closer. I’ll release more of the footage/pics some time this week.
I counted approx. 35 different people working on TE7, (I believe at the height of the drilling there were up to 150 personnel). The flare in the night is spectacular, it lights up the desert for miles around. As you can see from the footage/pics TE7 is still on flow test. What we have discovered is that TE7 is still on a restricted choke, the pressure has not dropped one single jot. This could indicate that TE7 may be bigger than is being reported by Sound. If you look at the drills from the hills over looking the site TE7, TE6, TE5, you’ll see that they are all basically on a line which goes towards another set of hills, over those hills is the location of the TE8 drill. Speaking to locals was most enlightening. The gas was discovered circa late 1960’s and was then thought to be many TCF’s the problem then was that the gas wasn’t deemed economic. Not so now. I lost count of the amount of trucks carrying butane gas bottles. I spotted literally hundreds over my 5 days in Morocco. Every one uses gas…..
TE8 is the game changer and the first in what I call the potential ‘Company Makers’. It’s on trend and on the same geology as the commercial discoveries thus far. That is to say it’s on the same gas seam which is believed to be substantially bigger, extending far beyond into the desert. Locals say that it’s been known for decades that Tendrara and the acreage surrounding has contained vast volumes of gas/hydrocarbons. So it doesn’t take a great leap of faith to realise that TE8 will hit gas and that strike could be up to 3 Trillion Cubic Feet (TCF). This is why there’s currently a Schlumberger team on the ground at Tendrara. Presumably finishing up flow testing and making preparations for the the TE8 drill. How do I know that? They drove past us several times over two days in their Schlumberger 4×4 which parked up on the Sound Energy accommodation blocks. The tie up with a world class oil field services company and the discovery of a Gendarmerie outpost on the camp is an indication of how important the Moroccans see Tendrara and this is exactly the same situation on the surrounding Shell acreage. It is the ‘Real Deal’. Gas will be struck on TE8. Local labourers are also being recruited/re-employed for the TE8 drill early 2017.
We did meet a Moroccan chap who had worked on the acreage for over 11yrs as a guard. His knowledge of the history of the acreage can’t really be under-estimated. He is 100% certain that TE8 will strike gas.
I’ve been around a few oil sites in my time over the years, the Tendrara drills are as real an investing opportunity as one can get. It’s not a nickel and dime operation it’s a full blown hydrocarbon play. A real opportunity with multi-bag potential. The team involved have the experience and the finance to transform SOU into a footsie 250 company. They are not a ‘one trick pony’ or a ‘roll of the dice’. Sidi Moktar, Badille etc. All are potential transformational assets. The lead up to the TE8 spud will move the shareprice and it’s my belief that the Company are being conservative with their news due to pressure from the AIM Regulators. Sound should move to a standard listing and ditch the Nomad. That’s if they don’t get taken over first. This will rise as the next drill approaches. Of course there’ll be lumps and bumps along the way but I can see £2/£3 easily on a successful TE8 drill which will derisk TE9, TE10 etc.
Investors and traders alike should ditch their ‘lifestyle company’ plays and get in on the Sound Energy action. It’s not a roll of the dice. The dice has been rolled, it’s the number it lands on that we await. It’s going to go mental in 2017!