TIDMSOU

RNS Number : 6546T

Sound Energy PLC

26 March 2021

26 March 2021

Sound Energy plc

("Sound Energy" or the "Company" and together with its subsidiaries the "Group")

Statement re Media Speculation

Sound Energy, the Moroccan focused upstream gas company, notes recent Moroccan media speculation in relation to the Company's proposed micro liquefied natural gas ("mLNG") phase 1 development project for the TE-5 Horst (the "Phase 1 Development") at the Tendrara Production Concession (the "Concession").

As previously announced the Company is, pursuant to a letter of exclusivity announced by the Company on 23 December 2020, in exclusive discussions with Italfluid Geoenergy S.r.l ("Italfluid") pursuant to which the parties have agreed to use their reasonable endeavours to negotiate and enter into a binding project contract (the "Project Contract") which will on entry commit Italfluid to design, construct, commission, operate, maintain and let to the Group a mLNG Plant (the "mLNG Plant") which can produce LNG. The Company is not party to Italfluid's own financing arrangements. The mLNG Plant, which would also treat and process raw gas from the Phase 1 Development prior to liquefaction, is a substantial part of the surface facilities required to be built and operated as part of the Phase 1 Development. As previously announced on 23 December 2020 Sound contract negotiations with Italfluid include part capital and part leasing arrangements to cover provision of plant and Operation and Maintenance contracts.

Italfluid is an integrated service company which provides certain upstream petroleum services, including the design, construction, commissioning and maintenance of process plants and hydrocarbon processing, including gas liquefaction to produce liquified natural gas.

The Company confirms that exclusive discussions with both Italfluids and with the prospective Phase 1 Development LNG offtaker (the "Offtaker") continue positively and are well advanced, with a view to seeking to reach agreement contemporaneous agreement in due course. However, the Company cautions that no agreements have yet been reached and that exclusivity between Sound Energy, Italfluid and the Offtaker is expected to expire, as previously announced, on 31 March 2021. Additionally, the negotiation of and entry into binding agreements remains subject to the approval of the Concession joint venture partners and to a Final Investment Decision on the Phase 1 Development being taken.

Negotiations between the parties will continue following the expiry of exclusivity and further announcements will be made, as appropriate, in due course.

For further information please contact:

 
 Vigo Communications - PR Adviser               Tel: 44 (0)20 7390 0230 
  Patrick d'Ancona 
  Chris McMahon 
 Sound Energy                              Chairman @soundenergyplc.com 
  Graham Lyon, Executive Chairman 
                                                Tel: 44 (0)20 7397 8900 
   Cenkos Securities - Nominated Adviser 
   Ben Jeynes 
   Russell Cook 
 SP Angel Corporate Finance LLP 
  Richard Hail                                 Tel: +44 (0)20 3470 0470

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

STRBGGDXDSDDGBL

(END) Dow Jones Newswires

March 26, 2021 06:47 ET (10:47 GMT)

Sound Energy (LSE:SOU)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more Sound Energy Charts.
Sound Energy (LSE:SOU)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more Sound Energy Charts.