Sound Energy (SOU)

Sector:

Energy Producers

Index:

FTSE AIM All-Share

0.92p
   
  • Change Today:
      0.023p
  • 52 Week High: 1.43
  • 52 Week Low: 0.64
  • Currency: UK Pounds
  • Shares Issued: 2,043.12m
  • Volume: 682,240
  • Market Cap: £18.69m
  • RiskGrade: 409

Sound Energy seeking farm-out partner for Greater Tendrara

By Josh White

Date: Tuesday 09 Aug 2022

LONDON (ShareCast) - (Sharecast News) - Sound Energy updated the market on financing for the phase two development of its Tendrara production doncession on Tuesday, having mandated Morocco's Attijariwafa Bank to arrange a long-term project senior debt facility of up to $250m in June.
The AIM-traded firm said that mandate was for the partial financing of the currently-estimated $330m gross development costs.

It said on Tuesday that progress was being made with a number of external banking advisers and data review and, as it previously said, the parties were seeking to negotiate binding terms for the senior debt within 120 days under the eight-month exclusivity.

In addition, the firm said it was continuing to mature industry and alternative financing solutions for the remaining development costs of $60m net to its 75% working interest in Tendrara.

A number of industry counterparties capable of providing the required financing had expressed interest in pursuing discussions, the board reported.

As a result, Sound Energy said it had launched a formal farm-out process for Tendrara and the surrounding Greater Tendrara and Anoual exploration permits, and had appointed Gneiss Energy - a corporate finance advisory firm - to manage the process.

The company said the objective of the area-wide farm-out was to seek a co-investing partner in each licence to both fund the expected balance of phase two development costs, and also to progress an exploration and appraisal drilling programme in the Greater Tendrara and Anoual exploration permit areas.

"We are making good progress on the senior debt facility for the Tendrara project, which is planned to fund the majority of the phase two development costs," said executive chairman Graham Lyon.

"In parallel, we have now commenced a farm-out process to secure partner participation in both the development of the Tendrara production concession and exploration and appraisal in the surrounding exploration permits.

"Our re-evaluation of the potential of the Greater Tendrara and Anoual exploration permits has high-graded three drilling targets, two of which have previously encountered gas shows."

Lyon said the company believed mechanical stimulation was "the key to unlocking" the potential of the TAGI gas reservoir, as Sound had done at the TE-5 Horst discovery.

"Importantly, future discoveries in this area have the potential to be commercialised through the planned infrastructure that will be built at the TE-5 Horst development.

"We look forward to updating shareholders on progress as we move forward."

At 1418 BST, shares in Sound Energy were up 11.36% at 1.56p.

Reporting by Josh White at Sharecast.com.

Email this article to a friend

or share it with one of these popular networks:


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 0.92p
Change Today 0.023p
% Change 2.58 %
52 Week High 1.43
52 Week Low 0.64
Volume 682,240
Shares Issued 2,043.12m
Market Cap £18.69m
RiskGrade 409

Sound Energy Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
78.22% above the market average78.22% above the market average78.22% above the market average78.22% above the market average78.22% above the market average
89.47% above the sector average89.47% above the sector average89.47% above the sector average89.47% above the sector average89.47% above the sector average
Price Trend
24.47% below the market average24.47% below the market average24.47% below the market average24.47% below the market average24.47% below the market average
13.92% above the sector average13.92% above the sector average13.92% above the sector average13.92% above the sector average13.92% above the sector average
Income Not Available
Growth
32.94% above the market average32.94% above the market average32.94% above the market average32.94% above the market average32.94% above the market average
6.12% above the sector average6.12% above the sector average6.12% above the sector average6.12% above the sector average6.12% above the sector average

What The Brokers Say

Strong Buy 0
Buy 1
Neutral 0
Sell 0
Strong Sell 0
Total 1
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Sound Energy Dividends

No dividends found

Trades for 15-Jul-2024

Time Volume / Share Price
15:58 1,445 @ 0.90p
14:05 95,067 @ 0.95p
11:49 115,000 @ 0.95p
10:40 1,052 @ 0.95p
10:40 57,631 @ 0.95p

Top of Page