Dear all, sharing a recent UOB KayHian research report on Sona:

http://www.sonapetroleum.com/download/april2016/gains-from-both.pdf

Regards,
Sona Petroleum

Hi all, sharing a video on Stag Oilfield that we hope will provide a better idea of our intended acquisition: http://www.sonapetroleum.com/download/april2016/video1.html

Regards,
Sona Petroleum

Dear all,

We note comments that our team should be doing more to convince shareholders. We would like to state for the record that:
-- All shareholders (majority or minority, institutional or retail) are important to us.
-- Public listed companies are bound by guidelines that extend to our communications.
-- What we can do is share the facts with the public. We trust our shareholders to make informed decisions.
-- Sona has actively engaged media in order to communicate our story through channels that allow all shareholders and the public equal access to information. Once articles are published, we upload them to our website (http://www.sonapetroleum.com/media-clippings.html) and share them with this community.

On another note: We have received some questions regarding the proxy form submission. Please note that:

(i) If you have completed and submitted the Form of Proxy prior to the Previous EGM, your Form of Proxy will continue to be valid for the purpose of the Adjourned EGM, PROVIDED your name remains on the Record of Depositors as at 5.00 p.m. on the Revised Record Date. Your proxy / proxies will be entitled to vote in the Adjourned EGM based on your shareholdings on the Revised Record Date; or

(ii) If you would like to change the details in Form of Proxy that you have submitted earlier, you may do so by completing and depositing the enclosed revised Form of Proxy at our registered office at B-13-15, Level 13, Menara Prima Tower B, Jalan PJU 1/39, Dataran Prima, 47301 Petaling Jaya, Selangor Darul Ehsan not less than 48 hours before the date and time fixed for the Adjourned EGM i.e. before 10.00 a.m. on 24 April 2016. The Form of Proxy that you have submitted prior to the Previous EGM will be considered null and void upon the receipt by us of the revised Form of Proxy and your revised Form of Proxy will be the valid form for the purposes of the Adjourned EGM.

The form can be downloaded from Bursa Malaysia here: http://www.bursamalaysia.com/market/listed-companies/company-announcements/5057813 - pages 7 and 8. Page 9 of the document is the envelope (for printing) with details of the mailing address for submission pre-printed for your convenience.

In addition, we have previously received a question as to whether one shareholder may send in two separate proxy forms based on his/her shareholding (one form for part of the shares owned which votes ‘Yes’, another which votes ‘No’). The answer is that it is possible to do so if you wish.

We hope this clarifies and look forward to your continued support.

Regards,
Sona Petroleum

Dear all,
Sharing an article in The Star recently about Stag Oilfield. Key points:
-- Stag’s cost of production is US$30 per barrel.
-- Oil from Stag historically and currently trades at a premium to Brent.
-- It is a buyer’s market now.

http://www.sonapetroleum.com/download/april2016/11%20April%202016,%20The%20Star,%20StarBiz,%20pg%203.jpg

Regards,
Sona Petroleum

Dear all, sharing more information on the Stag Oilfield as reported in The Edge.

http://www.sonapetroleum.com/download/april2016/11%20April%202016,%20The%20Edge%20Financial%20Daily,%20Home%20Business,%20pg%206.jpg

Thank you for your continued support.

Regards,
Sona Petroleum

Hi @T1T4N (W.r.t. your explanation to @coolinvestor:) and @Wong Heam Kiew,

As explained in our announcement, the capital repayment will be funded from internal funds (depending on amount of share repurchase) and/or conversion of warrants held by Management. The net assets of 38 sen per share is a pro forma number and for the purpose of the circular, is calculated based on the historical audited balance sheet as at 30th September 2015

As illustrated in Section 2.5.2 of our announcement, the pro forma net assets per share will reduce from 38 to 31 sen if there is no share repurchase and from 35 to 30 sen if there is 25% share repurchase. The reduction is due to the repayment of 8 sen to shareholders.

However, note that the pro forma net asset is based on our historical balance sheet. The actual net assets of Sona may change with time depending on how the company is performing.

When Sona takes over the asset, which is a production asset, the asset is expected to generate profitability which will contribute to our net assets. In addition, it is the intention of Sona to reduce operating costs and implement Infill Development to increase production which should increase profits and the net assets further. An increase in oil prices going forward, which is the consensus of most analysts, is also expected to have the same effect.

In summary shareholders will receive 8 sen per share and at the same time stand to enjoy possible upsides to the share value should the company grow in value and profitability.

Our share price is dependent not only on fundamentals such as our financial performance and position, but also other factors such as market sentiment and investors’ attitude and expectations.

Whilst we do not have control over the external factors, we believe the company’s fundamentals and performance will be strong because of the following:

1. The asset is a producing asset and is generating cash and profitability
2. Plans are in place to reduce operating cost and to implement infill development to increase current total production by about 35% and both of these will further increase cash generation
and profitability
3. There is general consensus among analysts that oil prices will increase going forward
4. There is capacity to further expand the assets of the company as the balance sheet with no gearing has capacity for borrowings and there is the conversion of warrants which will make available to the company considerable amount of cash.

Our view is that historical net assets or book value may not be best valuation methodology for O&G companies. An O&G company can trade above or below its book value and the price-to-book ratio for O&G companies are wide-ranging.

It is our view that the key performance and value drivers of O&G companies are in its production, reserves and how fast new reserves can be found to replenish the depletion (reserve-replacement ratio*).

In the case of Sona, Stag is producing about 4,000 barrels of oil a day, with 13.3 MMstb and 17.2 MMstb of 1P and 2P reserves respectively. Stag will also have opportunities to achieve a replacement ratio greater than 100% through development of Stag’s 2C contingent resources (estimated by GCA at 4.9 MMbo) and progressing the Hart exploratory prospect (estimated by GCA at 6.4 MMbo Prospective Resources). There is also the likelihood that as we progress these developments, the contingent and prospective resources may increase.

In addition, supported by our strong balance sheet and fund-raising capabilities through borrowings, conversion of warrants or equity, there can be further growth in our proven reserves through future acquisitions / expansion of other O&G assets.

Note:
* The reserve-replacement ratio measures the amount of proved reserves added to a company's reserve base during the year relative to the amount of oil and gas produced. During stable demand condition environments, a company's reserve replacement ratio must be at least 100% for the company to stay in business long-term; otherwise, it will eventually run out of oil. The ratio of a top performing company will be greater than 100%.

Thank you.

Regards,
Sona Petroleum

Hi @Kareemabduljabbar,

W.r.t. your statement on the capital repayment, please note that as in our announcement dated 13 April 2016 (http://www.bursamalaysia.com/market/listed-companies/company-announcements/5057809) the steps required for the capital repayment to be formalized are as follows (with comments):

Step 1: The completion of the Proposed Acquisition
-- Comment: If the Proposed Acquisition is not approved and completed, there will be no capital repayment.

Step 2: The formal approval of the Board
-- Comment: The Board has already been briefed and is supportive.

Step 3: Approval of the SC for the proposed exemption under Paragraph 16.1 of Practice Note 9 of the Malaysian Code on Take-Overs and Mergers to Platinum Autumn from the obligation to undertake a mandatory take-over offer on Sona Petroleum (“Proposed Exemption”), if required.
-- Comment: This application is only in the event that the conversion of Management’s warrants increases Management shareholdings to above 33%, an application will be made to SC to exempt Platinum Autumn from having to undertake a mandatory take-over offer. This exemption is provided for under Practice Note 9 of the Code

Step 4: The approval of shareholders of Sona Petroleum at an EGM to be convened for the Proposed Revised Capital Repayment and if required, the Proposed Exemption, as soon as practicable after the approval of the Proposed Acquisition
-- Comment: As required by the Companies Act, a separate circular will be issued and a further EGM will be convened for this purpose.

Step 5: Approval by the High Court
-- Comment: Application for capital reduction

The financing needed for the capital repayment is in place.

Thank you.

Regards,
Sona Petroleum

Hi all, please find below for Sona Petroleum’s latest Bursa announcements regarding to our proposed revised capital repayment exercise and adjourned EGM.

1. Announcement on the Proposed Revised Capital Repayment: http://www.bursamalaysia.com/market/listed-companies/company-announcements/5057809
2. Announcement on the Adjourned EGM: http://www.bursamalaysia.com/market/listed-companies/company-announcements/5057813

Do let us know if you’ve any questions!

Dear all, we would like to clarify that Credit Suisse is a direct shareholder of Sona Petroleum (12.9%), whose beneficiary is the PAG Group. Below are the Bursa links, for your reference:

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5052441
http://www.bursamalaysia.com/market/listed-companies/company-announcements/5052429
http://www.bursamalaysia.com/market/listed-companies/company-announcements/5039929
http://www.bursamalaysia.com/market/listed-companies/company-announcements/5039945
http://www.bursamalaysia.com/market/listed-companies/company-announcements/5039933
http://www.bursamalaysia.com/market/listed-companies/company-announcements/5039941
http://www.bursamalaysia.com/market/listed-companies/company-announcements/5039949

Lastly, we would like to share with you some recent news stories on Sona Petroleum:

http://www.bfm.my/snm-morning-run-crew-air-asia-sona-petroleum-minority-rights.html
http://www.bernama.com/bernama/v8/bu/newsbusiness.php?id=1233630
http://www.oananews.org/content/news/bussiness/sona-stag-us25-mln-deal-lowest-og-industry

As always, do let us know if you’ve any questions!

Dear all, we would like to share with you The Star's and The Edge's stories on Sona Petroleum:

1. http://www.thestar.com.my/business/business-news/2016/04/02/spactacular-no-more/
2. http://www.nama.com.my/PRINT_NEWS/2016/04/04/20160404_N60_EDG_CR_26_FC_THE~LURE~OF~SONAS~CAPITAL~REPAYMENT.JPG

Do let us know if you've any questions. Thank you!

We are confident that this QA is the best deal for the shareholders. Our thanks to the SC for its decision to approve this deal based on careful and comprehensive deliberations.

Dear all, we would like to share with you our latest interview with The Edge TV: https://www.youtube.com/watch?v=M1E8b6YFnpY. Looking forward to meeting all shareholders at the EGM tomorrow!

Dear all, we would like to share with you a video of Dr. Fereidun Fesharaki's (Chairman of Facts Global Energy) interview with ABC News 24: https://www.youtube.com/watch?v=L3b_w89hG2M.

It is interesting to note what the experts are saying on the outlook for Oil. With oil price predicted to rise to USD50 per barrel in 2016 (according to Dr. Fesharaki), a producer would be making a decent profit, more so if the oil produced is of higher quality and trades at a historical premium to brent.

Dear all, we would like to share our statement on the proposed capital repayment exercise as below. Do let us know if you have any questions:

SONA ANNOUNCES RM80 MILLION CAPITAL REPAYMENT

Kuala Lumpur, 25 March 2016 - Sona Petroleum Berhad (“Sona”) today announced a planned capital repayment exercise of up to RM80 million to shareholders, subject to among others, the completion of its planned qualifying acquisition (“QA”) of the Stag Oilfield as announced earlier.
Shareholders entitled to the capital repayment will be determined after completion of the QA and will exclude Sona’s management team and shareholders who participate in the Share Repurchase and vote against the QA at Sona’s forthcoming EGM, which will take place on 30 March 2016.

Up to RM80 million, less any payment for the Share Repurchase made to the dissenting shareholders who vote against the QA, will be distributed. Actual distribution amount may vary depending on the number of dissenting shareholders and the amount that Sona has to pay these shareholders under the Share Repurchase.

In the event there is no dissenting shareholder, the illustrative distribution amount per share is about 7.1 sen. The capital repayment exercise will not be carried out in the event that the amount payable under the Share Repurchase to the dissenting shareholders exceeds RM60 million.

“We see this exercise as a demonstration of our confidence in the strong business case of our QA, and as a way of giving back to long-term shareholders that have shown their confidence in Sona after the completion of our QA,” said Dato’ Sri Hadian bin Hashim, Managing Director of Sona. “The management of Sona has proactively and transparently communicated the business case of our intended acquisition (of Stag Oilfield) and has willingly addressed concerns from media, analysts and shareholders while balancing regulatory requirements on disclosure. We have chosen to acquire Stag Oilfield as it is earnings accretive with decent potential upside . We have full faith that shareholders seeking greater value, and the chance to own equity in an upstream oil and gas listed entity, will approve the intended acquisition during our EGM.”

The cash distribution of the capital repayment exercise will come from Sona’s trust account after taking into consideration Sona’s working capital requirements and the 80% utilisation of the cash trust account for the purposes of the QA (as set out in the Circular).

Dear all, please find below our answers to your questions as at 12noon today. Thank you so much for your support and please do not hesitate to contact us if you've any questions.

1. If I would like to reject the QA , I don't have to do anything or attend EGM?

If you are voting against the Proposed Acquisition and would like to participate in the Share Repurchase (as defined in the Circular), you must complete and sign the Request Form enclosed with the Circular. Further,:

(i) If you are attending the EGM in person, you must lodge the completed and signed Request Form with our share registrar together with the voting slip at our forthcoming EGM;

(ii) If you are appointing a proxy to vote at our forthcoming EGM (with your instructions on the Form of Proxy to vote AGAINST), your proxy must lodge the duly completed and signed Request Form with our share registrar together with the voting slip at our EGM; or

(iii) If you are appointing the Chairman as your proxy to vote at our forthcoming EGM (with or without your instructions on the Form of Proxy) , you must deposit BOTH the completed and signed Form of Proxy (with your instruction to vote AGAINST ALL the resolutions) and the Request Form at our registered office at least by 48 hours before the EGM (i.e by 10.00am, 28 March 2016).

Please note that to be eligible for the Share Repurchase, you must fully comply with the instructions set out in Section 12 of the Circular.

2. Can SONA warrant be converted to shares if they voted against the QA in this coming EGM?

All Sona warrants can only be exercised into Sona shares after the Proposed Acquisition is completed. If the Proposed Acquisition is not completed within the permitted timeframe (i.e. by end July 2016), the warrants will expire.

3. Why does it take 12 month for Sona to return the money back if investor vote "No"? i thought they need to return it to them prior to completing the QA which means before July 2016. Unless of course the QA will not be approved by the majority of shareholders. Then, they will need to liquidate the assets which takes 1 - 2 years. If majority of shareholders approved the QA, then Sona will need to pay those who vote "No" before July 16. Correct me if i'm wrong.

In accordance with the M&A of the Company, our Company will effect the payment to Dissenting Shareholders within seven (7) market days after all conditions precedent set out in the SPA have been fulfilled. This is PROVIDED THAT the Proposed Acquisition is approved by a majority in number of the holders of the Sona Petroleum Shares representing at least 75% of the total value of issued Sona Petroleum Shares held by all holders of Sona Petroleum Shares present and voting either in person or by proxy at our forthcoming EGM and PROVIDED FURTHER THAT that the Initial Investors shall be permitted to vote but members of the Management Team and persons connected to them (as defined in the Equity Guidelines) (including but not limited to Platinum Autumn Sdn Bhd) shall not be permitted to vote.

If the Proposed Acquisition is not completed within the permitted timeframe, our company will be dissolved, wound up or liquidated under the Companies Act. In accordance with our M&A, we will commence such liquidation process as soon as practicable within 60 days after the expiry of the permitted timeframe.

4. Do dissenting shareholders gets the accrued interest income as well? or just 45sen?

The consideration for Shares Repurchase shall be equivalent to a pro-rata portion of the amount then held in the Cash Trust Account (including interest, but net of any taxes payable and expenses related to the Share Repurchase). Please refer to section 12.3 of the Circular for further information.

5. Can I fill up proxy to vote NO, and meanwhile within this EGM period, I see a good price and sell off my shares?

Firstly, to be eligible for Share Repurchase, you must complete and sign the Request Form and fully comply with the instructions in section 12 of the Circular (please refer to Question 1 above).

Please note that as set out in section 12 of the Circular, any request for your Relevant Shares to be repurchased by our Company is irrevocable and, once made, cannot be withdrawn. The lodgement of the Request Form constitutes a valid and binding contract between you and our Company to repurchase your Relevant Shares and you must not subsequently sell or otherwise deal with any of your Relevant Shares, as doing so will constitute a breach of your obligation and our Company reserves the right to claim against you for any loss or damage suffered by our Company as a result of your breach.

Lastly, we would like to share additional details of the proposed acquisition of Stag Oilfield. We trust that this will provide everyone with more clarity:

http://www.sonapetroleum.com/download/sp-march2016.pdf

Dear all, thank you for your comments. Regarding questions on CS/ PA and the share price, we cannot comment on it as it would be speculative and misleading.

As for questions on the proxy form, you may nominate any person of your choosing as your proxy.

Please do not hesitate to contact us in this platform, should you have any questions. Thanks!

Dear all, thank you for your support. Please find here additional information on the intended acquisition of Stag Oilfield: http://www.sonapetroleum.com/download/snp-stag-oilfield-2016.pdf

Hi @callme777,

We are an experienced management team and we are confident that informed and long-term investors understand the potential upsides:

Stag Oilfield cost of production is currently ~US$30/bbl. Apart from the fact that we have plans to reduce this by 10-20%, many industry experts don’t expect oil prices to stay at these levels for long. It already hit historical lows recently and we all know that this is a cyclical industry. It is also important to understand that crude from Stag Oilfield is of a high quality and has historically traded at a premium to Brent (current premium is US$1.50 per barrel – rose to as much as US$6.00 previously).

Stag Oilfield is currently producing (approx. 4,000 barrels a day currently, and we have plans to increase this) – providing us with immediate and continuing revenue and cash flow given that the effective date for us to assume revenue and risks is from June 2015.

Finally, the equity IRR of more than 15% from the assets to be acquired far exceed the yield that the current cash yield that shareholders are getting if they argued on the short returns they could get based on today's market price. Not to mention the fact that liquidation would take many months. For just a few sen, would an investor prefer to wait (an unknown number of) months for a future sum of money that, as any financial person will tell you, is worth less than the equivalent numerical value today?

When you are investing, you are always looking at the future returns. We are buying the assets significantly lower than what the independent valuer considers fair, our cost of production is low (and is already profitable when oil prices are at US$40) and the asset is situated in a proven oil basin and proven reserves with transparent and clear regulatory environment. We are going to increase production by expanding the current producing wells and our crude is a premium product with good demand as feedstock.

We hope the info provided will help investors make an informed decision.

Dear all, thank you so much for your questions. Please find below our responses to your questions (as at 2pm today):

1. Management needs to improve their skills in running a listed company and understanding how stock market works.

Thank you for your feedback. As a listed entity, we make it a point to understand our investors’ perspectives – we will continue to provide as many updates as possible through the media and online channels, within regulatory guidelines.

2. What if a shareholder ignores the EGM and does not submit any feedback. Is this a default vote yes for all?

No, that is not the case. Votes will only be counted based on shareholders present and voting at the EGM.

3. How many percent the QA will be approved, according to the information now.

We do not wish to speculate, but are confident of securing QA approval given the strong business and economic case that the Stag Oilfield presents to Sona and its investors.

4. Advise to Sona to buy out those shareholders opposing the QA to ensure you garner at least 75% votes. You can always place out the shares at higher price once market sentiment improved and oil price recovered. Who knows the business better than you & you are in the driving seat too.

Thank you for your faith in us! Your suggestion makes a lot of sense – however, Sona’s team is prohibited from voting at the EGM to ensure that the decision made is a true and accurate reflection of shareholder sentiment.

5. The way SPAC rules are structure there is a higher change SPACS will fail.

Like any other listed company, a SPAC is exposed to risks beyond its direct control (exchange rate risk, industry / sector risk, political risk, economic risk, etc) – where a SPAC differs is in the increased security measures placed upon it by regulators to protect shareholders. That being said, we see the SPAC structure as protective of shareholders, and as allowing shareholders to “enter at the ground floor” – a domain traditionally reserved for venture capitalists and larger investors.

As always, please do not hesitate to contact us in this platform, should you have any questions. Thanks!

Thanks all. Sharing more recent news coverage for your reference:

The Sun: http://www.thesundaily.my/news/1722209

Bloomberg TV Malaysia: https://www.youtube.com/watch?v=it9RciqTMa8&feature=youtu.be

The Edge: http://www.theedgemarkets.com/my/article/sona-petroleum-rises-109-acquisition-australian-oil-firm

The Edge: http://www.theedgemarkets.com/my/article/sona-seeks-institutional-shareholders-back-qa

The Edge: http://www.theedgemarkets.com/en/node/264210

Thank you for all your support and comments - we will be responding to queries / concerns later today. The Sona management team is currently meeting with analysts and will provide further updates following our discussion.

In the meantime, sharing more information from our media engagements - The Star has today published an article (in print and online) and a recording of our interview with them yesterday: http://www.thestar.com.my/business/business-news/2016/03/16/sonas-acid-test/

More information on our proposed acquisition for all. Please do not hesitate to contact us in this platform should you have any questions. Thank you!

Providing shareholders the best possible returns:

1. We must focus on the real opportunity in front of us, i.e. the future, not current O&G sentiment.

2. Current production around 4,000 b/d.

3. The infill development (~US$110m) to be implemented 2016 – 2018 to increase 2P reserves and total production by over 35%.

4. Asset valuation at current low oil price and operating cost environment with potential for upside in oil price and reduction in operating cost (current ~US$30/bbl but target to reduce by 10 – 20%).

5. Sona has no borrowings to do this deal. Our cost of production of USD30 have a reasonable margin below the Brent crude price of USD40 even before pricing in the premium over Brent of about USD1.50 currently contracted. There are efforts to reduce on absolute cost basis or once the production increases after further infill drilling is done.

6. Measure us in 2017 when we have fully deployed our plans to increase production level and taken full control on the operation.

7. If some shareholders are persuaded by short-term yield returns, it will not benefit all shareholders who could potentially have to wait 6 to 9 months to see the return on the money they have invested. So the risk to all shareholders will be at the hands of less than 25% shareholders who feel they can get back their money if the deal received say just over 25 % of shareholders' rejection.

Sona wants to provide clarity to some key concerns by investors:

First profit contribution and internal rate of return (IRR):

1. Ongoing production (currently 4,000 b/d) to provide immediate and continuing revenue and cash flows.

2. The effective date for Sona to assume revenue and risks is at June 2015, so we are already enjoying revenues.

3. The equity IRR of more than 15% from the assets to be acquired far exceed the yield that the current cash yield that shareholders are getting if they argued on the short returns they could get based on at today's market price.

Sentiment on Oil & Gas sector – would it be more beneficial if Sona’s share price is above its cash value?

1. The figures bandied around on cash value of 48.5 sen per share could be less if we were to take into account the cost of liquidation or cost of purchase/holding on the shares. It could be about 47 sen.

2. The warrant holders who do not own the mother shares will be the most hurt as the value is '0' if the QA is rejected. The warrant is in the money.

3. If a shareholder owns the mother share and warrant today the value equates to (46.5 + 7.0) 53.5 sen. The value still exceed the value of 50 sen at IPO.

4. Sona management is very experienced and is committed on a long term success on this deal as demonstrated by the moratorium imposed on the shares held until the later part of 2018.

Ask us more, we want to clarify!

Thank you for your comments. Sona would like to provide all with more information in relation to our proposed acquisition of Stag oilfield:

Snapshot of our proposed acquisition – Stag oilfield

1. Stag oilfield is a currently-producing asset in a proven oil basin where many international oil companies are operating and investing.

2. Asset location in shallow waters 50km off the Western Australia coast. Stable and transparent regulatory environment with high standards of governance and protection for investors. Simple and straightforward petroleum arrangement with higher contractor net take than surrounding countries.

3. Purchase price of USD25million is the lowest psychological level of the O & G industry. Price is 50% less than originally agreed and significantly lower than the ‘Fair’ value recommendation by independent consultant, GCA.

4. Stag crude is higher quality and historically attracts a premium (USD1.50 currently) to the Brent. And we will invest to increase production.

We are confident this acquisition is in the best interest of our share and warrant holders.

Don’t hesitate to contact us on this platform. More than happy to clarify if there are questions. Constructive critics welcomed too.