Sound Energy (SOU)

Sector:

Energy Producers

Index:

FTSE AIM All-Share

0.95p
   
  • Change Today:
      0.016p
  • 52 Week High: 2.05p
  • 52 Week Low: 0.64p
  • Currency: UK Pounds
  • Shares Issued: 1,963.12m
  • Volume: 2,171,800
  • Market Cap: £18.67m
  • RiskGrade: 409

Sound Energy to acquire Schlumberger interests in Morocco

By Josh White

Date: Monday 14 Jun 2021

LONDON (ShareCast) - (Sharecast News) - Morocco-focussed upstream oil and gas company Sound Energy has entered into a sale and purchase agreement with Schlumberger to acquire the entire issued share capital of Schlumberger Silk Route Services (SSRS), it announced on Monday.
The AIM-traded firm said that as a result, it would have increased participating interests in the Anoual and Greater Tendrara exploration permits in eastern Morocco at 75%, as well as full control over its 75% participating interest in the Tendrara concession.

It described the deal as an "accretive acquisition" on "highly attractive" terms, adding that it would place the company in a position to generate enhanced returns, cash flow and value as it moved forward with the phased development of the TE-5 Horst.

The acquisition would also "significantly enhance" its discovered and undiscovered resource position.

Sound Energy said the increased participating interest would not impact the planned phased development strategy in east Morocco.

It said it would remain fully funded for its increased 75% working interest of planned first phase capital investments required until first gas at the Tendrara concession, subject to finalising funding arrangements previously announced with its strategic partner Afriquia Gaz.

The company said it would make an initial payment of one US dollar to the seller in cash on completion, with future payments possible under a profit sharing deed.

Under the terms of the deed, Sound Energy said it would between 8% and 11% of total net profits after costs, taxes and other applicable deductions arising from the concession over 12 years from first commercial production.

In the event of a cash disposal of part or all of SSRS' interest in the permits on or before 28 February 2023, Sound Energy said it would be required to pay 27.5% of the net cash proceeds from the disposal, rising to 55% if a disposal happened before 31 December 2021.

"We are delighted to have increased our working interest in our principal assets in eastern Morocco on highly attractive terms," said executive chairman Graham Lyon.

"This accretive transaction will, when completed, underline Sound Energy's position as the leading gas developer in Morocco and position us to generate enhanced returns, cash flow and value as we move forward the phased development of the TE-5 Horst."

Lyon said the increased position on the licences would "significantly enhance" the company's discovered and undiscovered resource position in eastern Morocco, as it continued delivering on its phased development strategy.

"Importantly, upon securing the funding envisaged under the heads of terms previously entered into with Afriquia Gaz, the company will remain fully funded for its increased 75% working interest of planned phase one Tendrara concession capital investments required until planned first gas."

At 1433 BST, shares in Sound Energy were up 3.45% at 1.5p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Sound Energy Market Data

Currency UK Pounds
Share Price 0.95p
Change Today 0.016p
% Change 1.71 %
52 Week High 2.05p
52 Week Low 0.64p
Volume 2,171,800
Shares Issued 1,963.12m
Market Cap £18.67m
RiskGrade 409

Sound Energy Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
76.79% above the market average76.79% above the market average76.79% above the market average76.79% above the market average76.79% above the market average
13.16% above the sector average13.16% above the sector average13.16% above the sector average13.16% above the sector average13.16% above the sector average
Price Trend
46.86% below the market average46.86% below the market average46.86% below the market average46.86% below the market average46.86% below the market average
Sector averageSector averageSector averageSector averageSector average
Income Not Available
Growth
69.08% above the market average69.08% above the market average69.08% above the market average69.08% above the market average69.08% above the market average
1.89% below the sector average1.89% below the sector average1.89% below the sector average1.89% below the sector average1.89% below the sector average

What The Brokers Say

Strong Buy 0
Buy 1
Neutral 0
Sell 0
Strong Sell 0
Total 1
buy
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Sound Energy Dividends

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Trades for 28-Mar-2024

Time Volume / Share Price
16:20 49,139 @ 1.01p
16:16 114,142 @ 1.00p
16:16 137,722 @ 0.97p
16:16 307,026 @ 0.97p
16:14 616,286 @ 0.97p

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