Sound today announced its unaudited half-year report for the six months ended 30 June 2021. 

Highlights

Development of the Tendrara Production Concession

• Advancement of Phase 1 Micro LNG engineering and commercial gas sales contracts
• Post period execution of conditional LNG sales agreement with Afriquia Gaz
• The agreement covers a 10 year Take or Pay liquefied natural gas sale and purchase at Tendrara
• Advanced negotiation on $18 million loan from Afriquia Gaz, a condition precedent, to be satisfied by 29th October 2021
• Progressed discussions with Italfluid, Micro LNG facilities provider on Lease to Own facilities and Operations and Maintenance contract
• Advancement of Phase 2 pipeline development discussions on long term take or pay gas sales agreement

Exploration and growth

• Post period Anoual exploration permit extended for a further year
• Post period completion of acquisition of Schlumberger Silk Route Services Limited

Corporate

• Successful restructuring of €28.8 million corporate loan notes in April 2021
• Reduction in administrative expenses by approximately 40% compared with 2020
• Receipt of circa €183,000 first payment for disposal of Badile land in Italy
• Post period equity subscription by Afriquia Gaz of £2.0 million

Graham Lyon, Executive Chairman said:
“A huge amount of work has been completed so far this year and much remains to be concluded during the remainder of 2021. Having secured a long-term LNG sales agreement with Afriquia Gaz, we have established a route to market for our gas and following completion of the proposed $18M loan from Afriquia Gaz, the Company will have financing for the Sound Energy share of the Phase 1 development. With important catalysts to come in the near term, I look forward to updating shareholders further as we progress towards the development phase of the project and to becoming a revenue generating business. I would like to thank all our staff, contractors, partners, noteholders, shareholders and other stakeholders for their commitment and support. I feel confident that Sound Energy is moving in the right direction and is building a business that will deliver real value for our investors by playing our part in fuelling the energy transition.”

KeyFacts Energy: Sound Energy Morocco country profile