The indicative, non-binding proposal comes from Advisory & Finance Group Investment Bank (AFG), a Moroccan financial institution that funds Oil & Gas Investment Fund (OGIF), Sound Energy’s partner and soon-to-be major shareholder.
It proposes to provide some US$60mln to US$100mln to build the envisaged Tendrara Gas Export Pipeline (TGEP) which will be needed to connect Sound Energy’s significant gas discovery to markets in Morocco and southern Europe.
TGEP will be a critical element in the commercialisation of the Tendrara project, Sound Energy highlighted.
Possible funding for gas processing facilities
The company explained that the AFG proposal was made on behalf of a range of institutions, including shareholders of OGIF, and, that some of these investors may also be prepared to support the funding of gas processing facilities.
OGIF is due to formally become a shareholder in Sound Energy before the end of the third quarter, upon conclusion of previously announced transactions, which will see Sound Energy increase its footprint in the region surrounding Tendrara in exchange for equity.