copy / paste Sou RNs Today9 Aug 2022 11:32
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RNS Number : 3276V
Sound Energy PLC
09 August 2022
The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
9 August 2022
Sound Energy plc
("Sound Energy" or the "Company")
Update re Phase 2 Development Financing and Launch of Farm-Out Process
Exploration and Appraisal Portfolio
Sound Energy, the transition energy company, is pleased to provide an update on the Phase 2 development financing of its Tendrara Production Concession, an update on the Company's exploration and appraisal activities and the launch of a farm-out process for the Tendrara Production Concession and the surrounding Greater Tendrara and Anoual exploration permits.
Phase 2 Development Financing and Farm-Out Update
As announced on 23 June 2022, the Company mandated Attijariwafa bank, a Moroccan multinational bank and one of the leading banks in Morocco, to arrange a long-term project senior debt facility of up to c.US$250 million for the partial financing (the "Phase 2 Senior Debt") of the currently estimated approximately US$330 million Phase 2 development costs (gross, 100%) of the Tendrara Production Concession. Progress continues to be made with a number of external banking advisers and data review and, as previously announced, the parties are seeking to negotiate binding terms for the Phase 2 Senior Debt within 120 days under the 8 month exclusivity.
In addition, the Company is continuing to mature industry and alternative financing solutions for the remaining Phase 2 development costs of approximately US$60 million net to Sound's 75% working interest in the Tendrara Production Concession. A number of industry counterparties capable of providing the required financing have expressed interest in pursuing discussions in respect of both of the Company's Tendrara Production Concession and surrounding Greater Tendrara and Anoual exploration permits.
As a result, the Company announces that it has initiated a formal farm-out process for the Tendrara Production Concession and the surrounding Greater Tendrara and Anoual exploration permits and has appointed Gneiss Energy Limited, a leading energy corporate finance advisory firm, to manage the farm-out process.
The objective of the area-wide farm-out is to seek a co-investing partner in each licence to both fund the expected balance of Phase 2 development costs and also to progress an exploration and appraisal drilling programme in the Greater Tendrara and Anoual exploration permit areas.
Exploration Update
Following the Company's announcement on 14 April 2022, the Company has continued to re-evaluate the extensive exploration portfolio within the Greater Tendrara and Anoual exploration
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