(Alliance News) - Sound Energy PLC on Monday said it had received EUR182,535 net of fees from the sale of area one of the Badile Land from an unnamed buyer.
The Morocco-focused upstream gas company said its former Italian subsidiary Apennine Energy SPA entered into a pre-sale agreement in August 2020 to sell the land, which was where the Badile exploration well was drilled in 2017.
In 2018, Sound Energy sold its former Italian portfolio Sound Energy Holdings Italy Ltd to Coro Energy PLC. Apennine is a wholly-owned subsidiary of Coro. As part of the sale, Coro agreed to restore and sell the Badile Land, and to give any net proceeds from the sale back to Sound Energy.
Back in August, Sound Energy said the two areas of the Badile land will be sold for a total amount of EUR650,000, adding that it will receive total net proceeds of EUR600,000.
"Under the terms of the pre-sale agreement, it was agreed that the sale of the Badile Land would proceed in two independent stages, being an initial sale of area one, on which no restoration works were required to be undertaken and the subsequent sale of area two, which remains subject to the requirement for restoration works to be carried out and certified as complete. The restoration works on area two are pending a decision of the Italian local authorities as to the proposed scope of the restorative actions," said Sound Energy.
It is anticipated that conclusion of the sale of area two for a consideration of EUR350,000 will be completed later this year.
Shares in Sound Energy were up 3.6% at 1.45 pence in London on Monday.
By Zoe Wickens; zoewickens@alliancenews.com
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Sound Energy (SOU)
Coro Energy (CORO)