Proactive Investors
Oil analyst Malcolm Graham-Wood says Sound Energy’s Tendrara gas discovery has the potential to add pounds onto the firm’s share price.
Sound’s share price could catch fire if Tendrara progresses like some think it will.
Oil analyst Malcolm Graham-Wood reckons Sound Energy PLC’s (LON:SOU) Tendrara gas discovery in Morocco could be huge not just for the company, but for the country too.
“There’s absolutely no doubt that they’ve found a lot of gas,” he tells Proactive Investors.
“We’re talking meaningful in terms of the country, let alone the company.”
But just how big does he think Tendrara turn out to be?
“My estimate for this at the moment is something between 3-5tcf (trillion cubic feet of gas) and it could be a lot more.”
He adds that, by his calculations, for every 1tcf that Sound discovers at the project, it should add around £1 to the company’s share price.
Graham-Wood says that Tendrara has everything going in its favour for it to become a “world class” discovery.
Whether it turns out to be such a thing or not, he’s confident that it’s a win-win for Sound investors.
“If it gets to the stage of being a really huge development then clearly bigger companies than Sound will take an interest.
“But the good thing is, because it’s not an offshore development or a huge, long [development] needing a significant amount of cash, it’s something that Sound can develop themselves for the time being.
“So it’s sort of the best of all worlds for Sound investors.”
