- Sound Energy
- 10 April 2025 12:55:46
Source: Sharecast
The AIM-traded company said in its final results that it had completed key preparatory work for phase one of the Tendrara Production Concession, including the safe installation of production tubing and the workover of both required wells.
Construction of the LNG storage tank had reached its final stages, and major plant equipment had now arrived on site for commissioning.
Offsite fabrication of plant components also continued through the year.
In parallel, Sound advanced project financing discussions for phase two, which involves the development of a pipeline to deliver gas to market.
The firm said financing talks were ongoing with Attijariwafa Bank, Morocco’s largest lender and exclusive lead arranger for the project.
Sound also completed a strategic asset sale in December, divesting a 55% working interest in the Tendrara Production Concession and minority stakes in the Grand Tendrara and Anoual exploration permits to Managem.
The transaction, which involved the sale of its subsidiary Sound Energy Morocco East, unlocked significant future funding for Sound’s retained 20% interest in the concession and 27.5% interests in the two exploration licences, which were currently undergoing extension and renewal.
“'Significant progress has been made in advancing the sustainability of the company through the transformational transaction with Managem which brings a substantial co-venturer that will operate the mLNG project, provide Sound Energy's equity funding to take final investment decision on the phase two pipeline project and fund two exploration wells for Sound,” said executive chairman Graham Lyon.
“Sound is now able to evaluate further growth opportunities, either within the current asset base or externally whilst seeking to further strengthen its portfolio and balance sheet.
“We have enjoyed a supportive working relationship with ONHYM, the Ministry and our various contractors in Morocco and, most importantly, we continue to benefit from the hard work and dedication of our own staff.
“We will continue to work diligently to deliver value, revenue and progress for all our shareholders during 2025 and beyond, as we focus on material developments in transition energy.”
At 1235 BST, shares in Sound Energy were up 4.46% at 0.68p.
Reporting by Josh White for Sharecast.com.