Sound Energy PLC Gas Sales Agreement: Phase 2 Tendara Development (9428T)
30 Novembre 2021 - 8:00AM
UK Regulatory
TIDMSOU
RNS Number : 9428T
Sound Energy PLC
30 November 2021
30 November 2021
Sound Energy plc
("Sound Energy", the "Company" and together with its
subsidiaries the "Group")
Gas Sales Agreement: Phase 2 Tendrara Development
Sound Energy, the Moroccan focused upstream gas company, is
delighted to announce that it has entered into a binding gas sale
and purchase agreement (the "GSA") in respect of the Phase 2
development of the Tendrara Production Concession with Morocco's
state-owned power Company ONEE (Office National de l'Electricite et
de l'Eau potable) for the sale of natural gas from the Tendrara
Concession in Eastern Morocco over a 10 year period.
The Company has entered into the GSA, which is in addition to
the conditional Phase 1 micro liquified natural gas TE-5 Horst
development related gas sales agreement entered into by the Company
with Afriquia Gaz and announced by the Company on 29 July 2021,
alongside its state-owned Tendrara Production Concession partner
ONHYM (Office National des Hydrocarbures et des Mines and together
with the Group the "Tendrara JV Partners").
Under the GSA, the Tendrara JV Partners have conditionally
committed to producing, processing and delivering gas from the
Tendrara Production Concession, in accordance with required ONEE
gas specifications, to the Gas Maghreb-Europe pipeline connecting
Algeria to Spain and crossing Morocco (the "GME Pipeline"), for an
annual contractual volume up to 350 million cubic meters of natural
gas per year for a period of 10 years, with an annual take or pay
volume of 300 million cubic meters.
The GSA includes a fixed unitary price for the annual volume of
0.3 bcm per annum (approximately 29.0 MMscf/d or a minimum amount
of energy of approximatively 10.5 million MMbtu per annum to be
delivered at the point of sale), which will result in annual gross
revenues attributable to the Tendrara concession (100%) as
envisaged in the original binding memorandum of understanding
between the parties announced by the Company on 30 October 2019
The GSA is conditional upon, inter alia: (i) all necessary
authorisations and permits having been granted for the construction
of the Phase 2 gas installations (ii) the final investment
decision, when taken, by the Tendrara JV Partners, being approved
by the Moroccan Ministries of Transition Energy and Sustainable
Development and Economy and Finance; and (iii) the entry by the
Tendrara JV Partners of an interconnection agreement with the
operator of the GME Pipeline, and the commencement of works, for
the connection of the Tendrara Production Concession to the GME
Pipeline. The conditions to the GSA are required to be satisfied
within 90 days of signature, however an extension is allowable with
the consent of all parties.
Graham Lyon, Sound Energy's Executive Chairman, commented:
"The agreement of the GSA is an important and long-awaited step
which will allow the Company to progress development planning for
the proposed TE-5 Horst Phase 2 development. It also underpins the
ongoing discussions with potential and identified funding partners.
These potential partners have expressed strong interest in
participation in the proposed regional infrastructure and asset
development via vendor financing, equity participation and
alternate lending solutions, in order to build the long-term
domestic infrastructure and gas supply in and for Morocco.
Satisfying the conditions precedent within a tight 90-day timetable
is challenging, however all parties have expressed support to
conclude with financiers.
We are delighted with this confirmation that the UK-Morocco,
ONHYM and Sound Energy partnership is working well, and such a
business partnership can enhance, with the strong support of our
shareholders and our local partners, the expected 5.7% economic
growth of the Kingdom of Morocco despite the COVID-19
pandemic."
For further information please contact:
Vigo Consulting - PR Adviser Tel: +44 (0)20 7390 0230
Patrick d'Ancona
Chris McMahon
Sound Energy chairman@soundenergyplc.com
Graham Lyon, Executive Chairman
Cenkos Securities - Nominated Adviser Tel: +44 (0)20 7397 8900
Ben Jeynes
Peter Lynch
SP Angel Corporate Finance LLP Tel: +44 (0)20 3470 0470
Richard Hail
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the UK version of the Market Abuse Regulations No. 596/2014 which
is part of English law by virtue of the European (Withdrawal) Act
2018, as amended. Upon the publication of this announcement, this
inside information is now considered to be in the public
domain.
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