Onwards and Upwards3 Jan 2020 16:55
The company has a relatively strong balance sheet. At current exchange rates
(GBP/USD: 1.26 & GBP/EUR: 1.11) and adjusting for VAT receivable, the company
has net cash of approximately US$1.3 million. Of this, the company has cash of
US$32.7 million and VAT receivable of US$1.3 million which is offset by a bond of
EUR 28.8 million. This bond is due in 2021 and secured on Sound Energy Morocco
South. These exploration wells are expected to cost US$7 million on a dry hole basis
and up to US$9 million if testing is required. Sound’s share of this cost is 63%. This
means that there is more than sufficient financial resource to cover the future short term expenditure on exploration.