Oil analyst Malcolm Graham-Wood tells Proactive Investors that ’s () Moroccan gas discovery, Tendrara, has the potential to add more than £5 to its share price.
He says that the rough rule of thumb is that every 1 trillion cubic feet (tcf) of gas that Sound finds at Tendrara this will add around £1 per share.
“My estimate for this at the moment is something between 3-5 tcf (trillion cubic feet of gas) and it could be a lot more.
“So my numbers say they maybe should be between £5 and £5 a share, but if it’s a huge discovery it could be 25tcf or more.”
He adds that everything is falling in place for the discovery to be considered ‘world-class’.
“It could be a game-changer for the country not just the company,” Graham-Wood concludes.
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