Malcy Blog Comment10 Apr 2025 17:29
Sound Energy
Sound has announced its audited final results for the year ended 31 December 2024.
HIGHLIGHTS
Development of the Moroccan Tendrara Production Concession (the ”Concession”)
· Phase 1 Micro LNG (”mLNG”) project (”Phase 1”):
o Safely installed production tubing and completed workover of both wells necessary for first gas production
o LNG storage tank at the final stage of construction at site, with roof installed
o Extensive activity continued offsite with our contractor and its sub-contractors designing and constructing plant equipment and receiving the equipment at site
o Key equipment arrived at site for commissioning
o Processed gas expected at plant in Q4 2025
· Phase 2 Gas (pipeline) development (”Phase 2”)
o Continued progress made for project financing from exclusive lead arranger, Attijariwafa Bank, Morocco’s largest bank
Exploration
· Exploration licences are all in the process of extension and renewal
Corporate
· In December 2024, completed partial divestment of the Concession and Grand Tendrara and Anoual exploration permits, through the sale of the Company’s subsidiary, Sound Energy Morocco East Limited (SEME), to Managem SA. SEME held a net 55% working interest in the Concession and 47.5% interest in the Grand Tendrara and Anoual exploration permits. The Completion of the transaction unlocked significant future funding of the Company’s retained 20% interest in the Concession and 27.5% interest in the exploration permits
Graham Lyon, Executive Chairman said:
”Significant progress has been made in advancing the sustainability of the Company through the transformational transaction with Managem which brings a substantial co-venturer that will operate the mLNG project, provide Sound Energy’s equity funding to take FID on the Phase 2 pipeline project and fund two exploration wells for Sound. Sound is now able to evaluate further growth opportunities, either within the current asset base or externally whilst seeking to further strengthen its portfolio and balance sheet.
We have enjoyed a supportive working relationship with ONHYM, the Ministry and our various contractors in Morocco and, most importantly, we continue to benefit from the hard work and dedication of our own staff. We will continue to work diligently to deliver value, revenue and progress for all our shareholders during 2025 and beyond, as we focus on material developments in transition energy.”
Sound has come a long way in the last five years and is now in spitting distance of revenues and with funding, potential exploration activity is resuming. Add to that the company seem poised for further growth and Sound is changing, one for the radar screen I suspect.
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