Sound Energy PLC - Agreement
Marketing Process Update: Exclusivity Award
Marketing Process Update
The Company announced on
The Company has since entered into non-disclosure agreements with 23 companies and, following these, hosted some 15 management presentations which resulted in the Company receiving a number of non-binding offers for its Eastern Morocco Portfolio, delivering a range of valuations and risk / reward profiles.
Fundamentally, the Company continues to believe the Tendrara basin requires further exploration drilling to unlock fully the basin potential and to deliver enhanced value to shareholders.
As a result, the Company has now entered into a non-binding heads of terms agreement (the "HOT") with, a privately-owned,
Under the terms of the HOT,
On completion of the Proposed Transaction it is anticipated that
The cash consideration will be payable in three tranches: 55% on completion of the Proposed Transaction (from which the Company will meet transaction expenses and related costs); 30% at the Final Investment Decision (when binding commitments are made to provide the development capital) of the concession; and 15% within 60 days of the delivery of first gas production from the concession. The completion of the Proposed Transaction will be subject to satisfactory completion of due diligence and Purchaser financing.
The Proposed Transaction will be subject to
Further announcements in relation to the progress of the Proposed Transaction will be made, as appropriate.
"The Proposed Transaction being progressed on an exclusive basis funds development of the Tendrara project, provides early monetisation of a substantial part of our established gas resources and retains upside for our shareholders through both future gas production and further exploration drilling."
For further information please contact:
Tel: 44 (0)20 7390 0230
JJ Traynor, Chief Financial Officer
Cenkos Securities - Nominated Adviser
Tel: 44 (0)20 7397 8900
RBC - Joint Broker
Tel: 44 (0)20 7653 4000
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Tel: 44 (0)20 3031 2000
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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.
This information is provided by RNS, the news service of the
Quick facts: Sound Energy PLC
Market Cap: £15.68 m
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