Sound Energy PLC - Partial Divestment Update & LNG Strategy
Partial Divestment Transaction Update
Early Production Development Plan with First LNG delivery targeted for 2021
Under the terms of the HOT, the Company had granted to the Purchaser an exclusivity period expiring on
The Company announces that, whilst the Purchaser has confirmed the satisfactory conclusion of its technical and commercial due diligence to the Company, the Purchaser has not yet demonstrated to the Company's satisfaction the proof of funds required in order to advance the Proposed Transaction and nor has a sale and purchase agreement been finalised. Accordingly, discussions continue with the Purchaser but these discussions are no longer exclusive and there can be no certainty that the Proposed Transaction will proceed or will successfully conclude.
Whilst the Company has continued to pursue the full Field Development Plan underpinning the Tendrara Production Concession (the "Concession") award centred around a 120 km pipeline infrastructure, as announced on
The Company will, therefore, seek to advance development of the TE-5 Horst field through an innovative, fast-track, cost efficient, micro LNG scheme targeting first LNG delivery during 2021. The proposed micro LNG production plan, which will be advanced alongside workstreams related to the full Field Development Plan (including ongoing negotiations with
This micro LNG production plan for the TE-5 Horst is viewed by the Company as an attractive route to generating early cash flows from the Concession. The larger full pipeline led development plan can then be added to this initial plan at a later date, given the inherently longer timescales involved in its implementation.
The Company is in discussions with industrial customers and distributors in
The Company intends to hold an investor event in late March/early
Further announcements will be made, as appropriate, in due course
"While discussions with the potential Purchaser continue, the Board has been active in considering and refining in parallel other options to monetise its asset at Tendrara. We continue to believe that we have a valuable position in the Moroccan energy sector encompassing a significant discovery in Tendrara with exciting additional exploration upside potential. The micro LNG development plan has been identified as an initial and rapid development strategy to prioritise early monetisation of the existing gas discovery, which can in turn facilitate a larger ultimate development. I look forward to reporting further on our progress in due course."
For further information please contact:
Tel: 44 (0)20 7390 0230
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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
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: £16 m
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