(Alliance News) - Sound Energy PLC said on Thursday it remains in discussions with the Moroccan government for the sale of natural gas production from the Tendrara concession in eastern Morocco.
Sound Energy said it is in the process of agreeing an amendment with the authorities to extend the negotiation period until March 31.
Back in October, Sound Energy entered a memorandum of understanding with Morocco's state power firm Office National de l'Electricite et de l'Eau Potable. Under the accord, the two agreed to work together to enter into a gas sales agreement before the end of 2019.
The memorandum signed in October covers the first 48.4 million standard cubic feet per day of natural gas production, with arrangements for further production to be negotiated in the final gas sales agreement. It also includes a fixed unitary price for a minimum annual volume of 29.0 million cubic feet per day, which once implemented will result in first year gross revenue attributable to the Tendrara concession of USD84 million.
The proposed gas sales agreement will cover future production from the Tendrara concession in the east of the North African country.
Shares in Sound Energy were trading 7.7% lower at 1.89 pence per share on Thursday morning in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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