(Alliance News) - Sound Energy PLC on Tuesday said it has started the farm-out process for the Tendrara production concession in Morocco.
It is also progressing industry and alternative financing deal for the remaining USD60 million worth of phase two development costs at Tendrara, net to its 75% working interest in the asset.
The company is in talks with external banking advisers and within 120 days aims to negotiate binding terms regarding phase two senior debt.
"Our re-evaluation of the potential of the Greater Tendrara and Anoual exploration permits has high-graded three drilling targets, two of which have previously encountered gas shows," added Executive Chair Graham Lyon.
In late June, the firm estimated the development costs for the project's phase 2 at around USD330 million.
Sound Energy shares surged 8.9% to 1.52 pence each in London on Tuesday morning.
By Tom Budszus; tombudszus@alliancenews.com
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Sound Energy (SOU)