Sona and Sumatec make me happy too... haha

Hope sumatec run again...

I don't think you can get price less than 50 cents after this.

Wow making lot money today... non stop push up...

Seller drop significantly ..good sign..

Volume banyak sangat until my pc also jam... haha..

common .. u can do it.. 40 cent may not a problem...

Not long to wait for the stock to be released from PN17. Still holding...

At this moment we need full report and projection of revenue for 2014 onward from the management. We only know part and puzzle of the information. Once we have full details it is easier to see the direction of the company moving forward. Salamander overall is making loss because the cost involve in other area than Bualang eg Indonesia. If we take out the Bualang field only , Salamader should be in profit. The only item that i'm not comfortable is Thai Tax Regime. They have tax call Special Remuneration Benefit or “windfall profits” tax which is eating lots of the company profit.

http://www.thestar.com.my/Business/Business-News/2014/07/10/RHB-CIMB-MBSB-seek-to-merge/

Seem the lowest fall this time is at 0.47 and this will be the turning point. Moving forward may not touch 0.47 again unless deal not going through as expected. Once QA signed all important information will be released to public as management is pressured by shareholder to share this critical information in details.

This stock mid or long term ok la. Now good price already.

Ini stock mid term or long term ok la. Price will stable only after Sona record revenue in their book. As we know , Salamander stock price in UK currently about 129 pence or RM 7.00 per share. Salamender revenue 2013 stand at USD 482.2. mil. Around 86% revenue come from Bualuang field [2013 average group production is 14200 boepd and 12300 boepd come from bualuang block ]. With 40% interest do you think Sona has no value at all? Sure has value but the exact value can only be determine once you have all figures in the annual report.
By the way better sign S&P first and complete the process. Otherwise all koyak. haha

3D oil company take de strong Revenue ..see their annual report... that why so cheap.

Aiyooo .. enter 0.19 cent now sudah .255... macam ada something big..

@Iching : Assumption : Revenue entitlement calculation for Sona start from 1 Jan 2014. No black and white S&P to back up this statement yet.

My view : If the profit calculation really start from the effective date 1 Jan 2014 [ probability of accuracy is maybe high since statement come from Director Hadian which i think credible person ] then by Dec 2014, you can see all these revenues reflected in Sona Annual Report as stated by Hadian.

If this is true, Sona will be the first SPAC to record revenue from oil production and as at the time we speak or write now , Sona is currently generating income to the company. I need to salute the management team for this. Not to ignore the other risks but my view is the bank agreed to loan Sona because of the assurance of this income and revenue are in place.

I have called Sona office and according to them, copy details of the S& P only can only be revealed after SC approval. Sona may reveals some info on the S&P where they deem appropriate to the public after they sign it but we can only get the copy of the S&P after SC approval. Therefore the above assumption we can only validated by then. At this moment we rely on Mr Hadian credibility on his statement.

Hope everything related to the QA signing , approval by SC and shareholder become reality and if all the facts is correct i will say this stock is positive stock to invest in mid term and long run.

http://themalaysianreserve.com/main/news/corporate-malaysia/5936-sona-has-rm903m-revenue-potential-for-2014-says-md

“Our agreement will be from Jan 1, 2014, so we would be able to recognise all the revenue and profit this year if the deal would be concluded by fourthquarter of 2014 (4Q14),” said Hadian.

So maybe I cjing is right but still i will need to validate this later.

Iching... Oh maybe i wrong. Lets validate this in the S&P once we have it. Thanks bro..

@focus... yes my understanding 1/1/2014 is valuation date not the date the profit calculation start.

@Iching .. Thanks bro.. but how sure are you the calculation start from 1 Jan 2014.. This item is very important cause if it is true the sharing of profit start from 1 Jan 2014 then i will say better buy. I will check this in S&P agreement once they signed.

Let see what we have from AGM yesterday :
1. Issue on management control in the operation of the B8/38 and G4/50 :
Statement from Datuk Saw :“Salamander Energy (Bualuang) Ltd (SEBG) is the operator of the two blocks – B8/38 and G4/50. As we own 66.67% of the economic rights of SEBG, we thus hold management control in the operations of the blocks.“Besides that, we will hold joint control over strategic and financial decisions together with Salamander,” Saw told reporters after Sona Petroleum’s AGM yesterday.
Link: http://www.thestar.com.my/Business/Business-News/2014/06/17/Sona-to-have-management-control-over-Thai-oil-field/
* We will validate this again when we have the S&P term and conditions

2. Saw said these assets would give shareholders an internal rate of return of 15%, should the deal be approved by the Securities Commission and shareholders.
= 15% mean what ? 15% from initial investment of USD 280 mil ? = USD 42 mil/ year on current producing block? Is this the same as your calculation after deducting all expenses and tax.
* Need to validate this in the details report of the QA later

3. Sign S&P on 26 June 2014. Yes this is the expiry date of Salamander offer as per their letter to Sona. Better sign. Target date Acquisition completed in Oct /Nov/Dec. My interest is if completed in let say November the calculation of revenue entitlement from Salamander only start from date of completion of S&P of backdated from date S&P signed? Need to check this in S&P agreement.

[Saw said it aims to sign the sale and purchase agreement (SPA) by June 26, after which it will prepare all the documentations and agreements with an aim to complete its prospectus by end of July. It will then submit the proposal and draft circular to the Securities Commission (SC).
"Our target is sometime early in the fourth quarter to get SC approval. The moment we get SC approval, in two weeks' time we will call for an EGM for shareholders approval. If shareholders of both parties approve, the acquisition is complete," he said.]
Link : http://www.thesundaily.my/news/1083681

4. Block B8/38 started production in 2008 and there are plans to add a third platform called Charlie. Approval for Charlie is expected to be obtained by year-end and installation is expected to be completed by 2016.
Fact : Alpha & bravo already in production . Now 3rd platform call charlie to be developed and complete installation by 2016.

5. At Block G4/50, four wells have been drilled and technical discovery has been made. Saw said the company intends to continue drilling with another four wells this year. Environmental impact analysis (EIA) for 20 wells has been submitted to the Thai authorities for approval.
"Of the 20 wells, Salamander will pick the ones with the highest prospects. The total mean potential resources based on knowledge obtained so far, is about 190 million barrels of oil," said Saw.In Block G4/50, Salamander will pay for the cost of the first two exploration wells, which will be drilled this year, up to US$15 million. If there is a commercial discovery, Sona Petroleum will have to pay US$15 million contingent cash.
My interest is by when can start production of this block? If this block produce then everybody will be happy.
Link : http://www.thesundaily.my/news/1083681

@focus.. I just sharing what i have read bro.. try to stick to the facts rather than assumption. Also really appreciate everybody comments here so that i can digest the info from both angle.. hihi. Anyway, i will wait for the details reports after they sign QA to have clearer picture on the deal. Im going for mid and long term investment and not short term...

http://www.themalaysianinsider.com/business/article/sona-petroleum-expects-revenue-flow-beginning-fy2014

Ni link full HOA Agreement . But most important are the terms and conditions in S&P Agreement .
http://announcements.bursamalaysia.com/EDMS/edmsweb.nsf/all/D65D4202583690F748257CEE0019E6F6/$File/Sona%20Petroleum%20(5%20June%202014).pdf

This AGM they don't talk much on QA. Maybe they just talk a bit on QA during Press Conference immediately after AGM. Full details on QA will be release only after they sign S&P latest by 26 June 2014.

Below link on tax regime info in Thailand : Now use Thailand III Regime . Royalty varies based on average production barrel/day. If Sona 4920 bopd then royalty about 5.75 % ( based on table )and Tax is based on 50% of net income. http://www.ccop.or.th/ppm/document/CAWS4/Thailand%20Fiscal%20Regimes_presentation.pdf

show start...

Lets review what we have now.
1. Fact :Sona IPO : July 2013 at Price RM 0.50 raised RM 550 million.
2. Fact :June 2014 :Sona proposal to QA by paying US$280mil (RM903.64mil) for a 40% stake in Salamander Energy (Bualuang) Ltd (SEBG), which owns two concessions called B8/38 and G4/50.The B8/38 field has been producing since 2008 while the G4/50 field is exploratory in nature.
3. Fact : Production of B8/38 is 12,300 bpd in 2013. Assumption : 2014 expectation production :11,000 and 14,000 bopd. This will lead to income revenue to Sona P&L balansheet this year subjected deal materialised.
4. Fact :Salamnder currently doing operation efficiency by switching the current floating production, storage and offloading (FPSO) for the new FSO, conversion of which is 60 percent complete, will take place over the summer 2014. With these new facilities in place, Salamander will be driving down the operating costs of the field by more than $20 million per year.

QA:
1. Fact :Need to sign QA before 26 June 2014 as per HOA. Follow by SC approval and shareholder approval in EGM. In fact Salamander shareholder also need to approve the proposal.
2. Assumption & Fact : Sona will get BNP Paribas loan of USD 140 million. I treat this is assumption because its just info from newspaper. However BNP Paribas is Sona Petroleum’s exclusive International Financial Adviser in respect of the Proposed Transaction. BNP Paribas has also been appointed as the Mandated Lead Arranger, Bookrunner and Underwriter for the purpose of providing financing for the Proposed Transaction. Therefore the news will have more than 90% accuracy. If bank has give greenlight to provide Facilities than its show bank are convinced with the business plan and projection of income of Sona.
3. Fact :Brief information on QA will be brief in the next AGM on 16 June 2014. However full and details report will only be released after QA or S&P signed ( should be before or on 26 June 2014). My undertsanding is management cannot release P&C information prior to QA signed.


What we don't know yet:
1. Full report and details of this QA in term of projection of ROI etc and expansion planning in the future. How much income per year and how to pay loan. What is the reserve at B8/38 and can last until when. When tentatively can get oil production at block G4/50. What is the expected reserve for this block and what is the cost involve etc. Hope can get this after QA signed.
2. Weather all party will approve the QA and how long the process
3. The calculation of income for the oil production when it will start ? backdated from HOA sign date or from date QA sign or from date full completion? This is because the block is producing now?

What i can see?
The direction is in line with Mr Hadian strategic plan for Sona. With the loan facility provided its show they able to convince the bank that the business is profitable, If the QA completed at the end of the day you can see income and revenue in the Sona balance sheet and Annual Report. With company balance sheet have income and revenue , more fund manager will be able to evaluate the potential of the company. A lot of fund managers will not place investment if they cannot see good balance sheet or good potential of the company and if sona can show having good and steady income , more and more fund managers will come in. It will slowly drive the share price higher.

The above is just my view only. Like King of Shark say don't play contra. Go for mid and long term. Price will easily plantuate at this moment

My bit comment on Cliq and Hibiscs at this stage: Cliq have smaller fund and to acquired QA with producing oil, will be difficult because the cost is not cheap. Therefore they may end up with similar approach of Hibiscs. However depend on cliq management if wanted to acquire oil produce field then need to borrow bank.
Hibiscs earlier have price jump to 2.50 on the news of several QA and news of possible success of getting oil but til now no oil production. The longer the waiting the price will slow going lower and shown now drop to RM 1.50- RM 1.60 range. Their warran also will expired shortly by next month. Its better for them to quickly drill and get the oil as soon as possible so that investor will not run away. The longer the waiting it will shrink the money the company have. I will also buy Hibiscs later once the announce hitting oil.

Sorry writing so long. After this i shall wait for the details report form SONA after they signed the QA.

The Greater Bualuang area comprises the B8/38 production licence, which contains the Bualuang oil field, and the G4/50 exploration concession.

I need to understand what they buy at B8/38. So far below are the current facilities they have at B8/38 block:

1.Block B8/38 Production License (380 sq km), contains Bualuang oil field
Water depth ~60m
Facilities – two bridge-linked WHPs (Alpha & Bravo) connected via pipeline
to Rubicon Vantage FPSO
Average production from the Bualuang oil field during 2013 was 12,300 bopd,

Facilities:
Bualuang Alpha [ In production since 2008 ]
Installed in 2008
12 slots
10 oil producers
2 water disposal/injectors

Bualuang Bravo [ In production since 2012 ]
Installed in 2012
16 slots
Planning 16 oil producers
7 wells drilled to date with Atwood Mako

Bualuang Charlie [ Pros ]
Bualuang Charlie development plan expected to be submitted for Board approval in mid-2014

2:G4/50
Drilling of high-graded prospects in the central and southern area of the G4/50 licence was stalled after the rejection of the Environmental Impact Assessment following a third party oil spill in the eastern Gulf of Thailand that resulted in oil making landfall. The Group’s oil spill contingency plans are extensive and well-resourced but in light of lessons learned from the spill in the eastern Gulf the plans have been enhanced and incorporated into a revised EIA submission that is now with the Thai authorities for consideration. It is hoped that the EIA approval will be received during 1H 2014 enabling exploration drilling to commence soon afterwards subject to the ongoing activity of the Atwood Mako drilling rig. The resource potential of the high-graded prospects in G4/50 ranges from 25-100 MMbo with chances of success in the 1 in 3 to 1 in 4 range.

I just talk to my investments colleague in my office and he said he prefer Sona because of the immediate income flow from production field as compare to Hibiscus where they are still searching for oil. Once you have immediate income you have more power and flexibility to expand your business while if u don't have any income your capability to expand business is limited. He belief sona have more capability in the future to expand or do more QA since you have income money to use for expansion.

Just sharing...

Nasib baik que buy 0.515 dapat sikit... hihi

Adoiii... dah macam movie sona forum ni.. hihi. Just wait for the QA signed first ( should be before 26 June ) and see the full report on the QA to be released to us after that .For me, Sona got nothing yet as QA not yet signed , SC not yet approved and Shareholder not yet agreed. Bila full report on QA keluar baru kita analyse. At this moment very limited information to digest. Some info given here do make sense and we need to be careful in our decision. But i will wait for the full report on the QA before deciding to continue for long term or not.

What i will do is to buy more at current price or lower if possible and hold the current sona share that i currently holding. Release bit by bit up to 70% portfolio toward the SC approval date. Balance 30% stay for long term. Hihi. Good luck to me.

Hibiscs price increase a lot from date sign QA :24 Oct 2011 ( RM 0.57 ) till SC approval date on 16 Feb 2012 ( RM 1.84 )

Davidsiaw. My understanding is sign QA first whereby its subject to SC approval and shareholder approval. Eg Hibiscs sign QA 24 Oct 2011, SC Approval 16 Feb 2012, Shareholder Approval 21 March 2012. Its still long way to go for Sona.

Full details/reports on the propose QA will only be released after they sign the QA with Salamander. After QA signed they will get SC approval and after that Shareholder approval. Sona will not release full details on the QA during this AGM. Only brief information on the QA to be released during next week AGM on 16. Therefore, what i understand the full financial report on why they select this QA will only be available after QA signed.

The management must have all the answer already on the above , Otherwise they will not make any decision on the QA. The only thing now we don't have these answers since they didn't release it to us. They need to clarify all the above to the investor in the AGM or earlier. Otherwise, you know what to do.

Try to compare Sona (RM 0.52) vs Hibiscs (RM 1.53) and what i think i can ask Sona management for better clarification:
1. If deal sealed sona will have immediate income due to current oil production while Hibiscs still under drilling stage. Sona need to show us Projection of Income to shareholders in the next 3 to 5years while Hibiscs need to convince investor the status of their drilling and when can get revenue and produce oil. 2. Sona will be on heavy loan borrowing vs Hibiscs. Management need to convince shareholders how much the repayment and how they are going to pay the borrowing during the period. 3. Sona investment currently limited in one region ( Thailand ) but Hibiscs investment is spread to many region. Sona management need to show plan how to diversify this in the future and how they are going to get fund to expand? 4. Both company are still in loss but Hibiscus is longer in loss (since 2011). But Sona cheap in price as compare to Hibiscs price.
As for me, Sona still cheap but need clarification from Sona Management on how to move forward from here. If they can explain and convince investors , the price will slowly go up but take times. Decision to hold, collect more or to sell is after i got clarification on the above.

Haha.. That what i understand la bro.. maybe im wrong cause im not expert in this field.. anyway just wait for professional analysis by expert .. Im still holding sona ketat2. haha.

1. Earn immediate income .From B8/ 28 Concession : 2013 production increased 71% to average 12,300 Barrel Oil Per Day. If 300 day about 4 million barrel. 40% stake = 1.5 million barrel. Revenue/year 1.5 mil * RM 100/barrel = RM 150 million or 12.5 mil /month 2. G4/50 : 40 % stake.. share2 with Salamander buat drilling.. Hit minyak share2 untung... Ini my rough understanding la . Salah tolong betulkan.. tapi strategy rasanya ok sebab not put evertning in one basket...

Sure they have due diligent process already before come into buying the stake. Long run should be ok. Anyway wait for the analyse report and more details info during AGM.

Buy now la ... cheap ma..

Biar la orang ambil profit kaw2 dulu... nanti ok la balik tu.. hihi..

HOA today... Legally binding S& P agreement by 27 June 2014... lepas tu baru la price naik kaw2. haha..

Beli Bualuang oil field with average production at 12,300 barrels of oil per day ok la tu...dah ada production...

i think sona need a very good news to break mother 0.615- 0.63 and son 0.325 - 0.34 block.

Good time price to move forward i think...

i'm already throwing all my money to collect Sona share since based on my assessment the potential of the price going up is very high. Good luck to me. Haha.

oh ok .. tq ray...

AGM : 16 June 2014 at KLGCC : 10 am

One of the Agenda :
6.ORDINARY RESOLUTION
AUTHORITY TO ALLOT SHARES PURSUANT TO SECTION 132D OF THE
COMPANIES ACT, 1965
“THAT pursuant to Section 132D of the Companies Act, 1965 and subject to the
approval of relevant authorities, the Directors be and are hereby empowered to
issue shares in the Company from time to time and upon such terms and conditions
and for such purposes as the Directors may, in their absolute discretion, deem fit
provided that the aggregate number of shares issued pursuant to this resolution
does not exceed 10% of the issued share capital of the Company for the time being
and that the Directors be and also empowered to obtain approval for the listing
of and quotation for the additional shares so issued on the Main Market of Bursa
Malaysia Securities Berhad AND THAT such authority shall continue to be in force
until the conclusion of the next Annual General Meeting of the Company.”

EXPLANATORY NOTE
1. Authority to allot shares pursuant to Section 132D of the Companies Act, 1965
(Agenda 6, Resolution 7) Ordinary Resolution 7 has been proposed for the purpose of obtaining the general mandate for issuance of shares by the Company under Section 132D of the Companies Act, 1965 (hereinafter referred to as the “General Mandate”). Ordinary
Resolution 7, if passed, will give the Directors of the Company authority to issue
ordinary shares in the Company at their discretion without having to first convene
another General Meeting.

*****The General Mandate, if granted, will provide flexibility to the Company for any
future fund raising activities, including but not limited to further placing of shares for
the purposes of funding current and/or future investment projects, working capital
and/or acquisition and thereby reducing administrative time and costs associated
with the convening of additional shareholders’ meeting(s)******

*Tak cukup duit la ni nak beli QA.

Ruslim : Life Insurance. Not many Japanese Life Ins Company in Malaysia...

Sorry Astro now RM 3.49 .. type error..