(Alliance News) - Shares in Sound Energy PLC surged almost 10% on Tuesday after the upstream gas company clinched a gas sales contract with Morocco's state-owned power company.
The contract with the Office National de l'Electricite et de l'Eau potabl, or Onee, is for the sale of natural gas from the Tendrara concession in Eastern Morocco over a 10 year period.
Shares in Sound Energy were up 9.2% at 1.42 pence in London on Tuesday afternoon.
Under the agreement, gas from Tendrara will be delivered for an annual contractual volume up to 350 million cubic meters of natural gas per year for a period of 10 years, with an annual take or pay volume of 300 million cubic meters. The deal includes a fixed unitary price for the annual gas volume.
"The agreement of the gas sales agreement is an important and long-awaited step which will allow the company to progress development planning for the proposed TE-5 Horst Phase 2 development. It also underpins the ongoing discussions with potential and identified funding partners," commented Sound Executive Chair Graham Lyon.
By Will Paige; willpaige@alliancenews.com
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Sound Energy (SOU)