Sound Energy PLC (LON:SOU) told investors it has applied for a development concession for the Tendrara gas discovery.
It marks another step towards taking Tendrara into production, following on from the week’s earlier news that it reached an agreement with a key contractor for front end engineering design to develop gas infrastructure.
Chief executive James Parsons described it as an “important milestone” for the project.
READ: Sound Energy takes next step toward production
“The concession award, expected later this year, will be a significant step to both de-risk the development and commercialise the gas discovery,” Parsons said.
“The company continues to make excellent progress on all fronts and, in addition to the FEED award announced on June 7, the company continues to advance discussions in relation to a gas sales agreement."
The company highlighted that Tendrara is expected to yield some 60mln cubic feet of natural gas per day once operational.
It would be monetised via connection to a 120 kilometres pipeline to the Gazoduc Maghreb Europe, which has yet to be built – it is this part of project that will be included in the FEED work.
In early morning trading, Sound Energy shares were 2.9% higher at 46p.
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