(Alliance News) - Sound Energy PLC on Wednesday said that Casablanca-based Attijariwafa offered to finance the second phase of its development of the Tendrara production concession in Morocco.
The London-based, Morocco-focused upstream gas company said Attijariwafa offered up to around USD237 million, subject to conditions being met before the end of September.
The funding includes a 12-year term including a two-year grace period from first drawdown and a security package. The loan will be used to design, drill, construct and operate wells, a treatment facility, and a gas pipeline to transport and sell natural gas produced under the Tendrara production concession to Morocco's National Office of Electricity & Drinking Water, among others.
Conditions for the financing include Moroccan governmental and ministerial approval, tax authority clearance of loan structure and amendment of gas sales agreement to lender satisfaction, Sound Energy said.
Executive Chair Graham Lyon said: "The majority of the conditions precedent to their offer are to be expected and as a result the company has been advancing a number of these for these for some time. We look forward to working with the arranger to conclude on what will be the first financing of its size for a gas field development in Morocco and further announcements will be made, as appropriate, in due course."
Sound Energy shares were 6.2% higher at 1.49 pence each in London on Wednesday morning.
By Tom Budszus, Alliance News reporter
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Sound Energy (SOU)