Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

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.

View full SOU profile View Profile

Sound Energy PLC Timeline

Related Articles

picture of oil well
October 23 2017
Programme will boost production from 30 barrels per day currently to a peak of over 150
picture of gas flare
July 19 2017
A new gas generator also came on stream recently and has started to produce the first power from the project
onshore drilling operation
October 10 2017
The programme won't resume until April or May 2018.

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2017

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use