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Sound Energy boss James Parsons “hugely excited” as Morocco gas business advances

Sound is advancing the Tendrara discovery towards commercialisation, with final investment decision due in early 2018
Tendrara, onshore Morocco well
Souind ended the first half with some US$50.1mln of cash

Sound Energy PLC (LON:SOU) chief executive James Parsons has told investors that he is “hugely excited” about the company’s prospects over the coming years.

His comments came in the Morocco-focused gas firm’s half yearly results statement, which was released on Thursday.

“Our journey so far, including the first half of 2017, has been a busy and exciting one, encompassing all the usual highs and lows of the exploration business.

“Crucially, and behind the scenes, we continue to grow our core Net Asset Value in Morocco and remain hugely excited about the company's prospects over the next year or two.”

READ: Sound Energy expands footprint as it prepares to open up commercialisation

Parsons revealed that Sound is now reviewing the group’s Italian portfolio following the disappointment of the Badile exploration well.

He added: “It is important to put this into context; having long shifted the axis of our activities to play-opening work in Eastern Morocco, Sound continues to rapidly build a Moroccan exploration-focused onshore gas business hinged on strong European gas fundamentals, a strategic partnership with Schlumberger and our multi Tcf opportunity set.

“We are clear in our goals strategically, strong financially, and on the path to firming up the very significant upside on our acreage.”

Work to advance the Morocco business has hit notable milestones in recent weeks, with the company completing its deal with OGIF to expand its acreage and arrangements being made to facilitate the commercialisation of the Tendrara gas project’s resources.

Parsons said: “the field development planning for the already proven volumes continues apace, most recently with the receipt of an indicative offer from AFG to fund the main pipeline. Final investment decision is now expected early 2018.

“These will be important catalysts as we continue to move the company forward and build value.

“We continue steadfast in our belief that the Eastern Morocco TAGI and Paleozoic is a completely new play for our industry and one which will over the next year or two prove both the making of our company and the making of the Moroccan oil and gas sector.”

In terms of its financial results, the company highlighted that it ended the six months to June 30 with US50.1mln of cash.

Production assets in Italy generated some £378,000 of revenue, and the company reported a £19.2mln loss for the period which included just over £15mln in exploration costs.

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