Eastern Morocco Portfolio Update

RNS Number : 5141Z

Sound Energy PLC

13 January 2020

 

13 January 2020

Sound Energy plc

("Sound Energy" or the "Company")

Eastern Morocco Portfolio Update  

Sound Energy, the Moroccan focused upstream gas company, is pleased to provide an update on the Environmental Impact Assessment ("EIA") approvals, negotiations of Tendrara Gas Export Pipeline ("TGEP") corridor rights and the Gas Sales Agreement ("GSA") negotiations.

EIA of the TGEP:

The Company is pleased to announce receipt of EIA approval from the Moroccan Ministry of Energy, Mines and Environment to build and operate a 120 km 20 inch gas pipeline connecting the proposed gas treatment plant and compression station ("CPF") to the Gazoduc Maghreb Europe pipeline ("GME").  The TGEP will cross the Matarka Commune (Province of Figuig) and Merija Commune (Province of Jerada) to reach the delivery point of the GME.

EIA of the gas treatment plant and compression station:

The Company advises that the EIA process related to CPF is progressing well.  The initial meeting of the National Committee from the Moroccan Ministry of Energy, Mines and Environment to review the CPF EIA was held on 10 October 2019.  The second meeting of National Committee to further consider and, if agreed, to approve CPF EIA is scheduled on 28th January 2020.

Tendrara Gas Export Pipeline corridor rights:

The Company advises that ongoing discussions with the representatives of the Morocco's Ministry of Interior to obtain rights through a long-term lease agreement for a 50m wide corridor along the entire 120 km length of the TGEP are progressing to plan.

Tendrara Gas Sales Agreement MOU:

The Company confirms that GSA negotiations continue and, as indicated in the announcement made on 2 January 2020,  is now pleased to announce signature of the amendment to the binding memorandum of understanding  with Morocco's Office National de l'Electricité et de l'Eau Potable, the state power company of Morocco, in order to extend the period for negotiations of the final GSA to 31 March.

The Company continues to work on a Build-Own-Operate-Transfer funding solution for the infrastructure at the Tendrara Concession in parallel with progressing the previously announced proposed sale of a substantial stake in the Company's Eastern Morocco Portfolio.  

The Company believes that the developments cited above are important milestones in the process of developing and commercialising the Tendara Concession and as the Company progresses towards the Final Investment Decision (when binding development capital commitments are to be made) for the concession.

Further announcements with respect to matters above will be made in due course, as appropriate.

For further information please contact:

Vigo Communications - PR Adviser Patrick d'Ancona Chris McMahon Simon Woods	Tel: [phone]
Sound Energy	[e-mail]
Cenkos Securities - Nominated Adviser Azhic Basirov Ben Jeynes	Tel: [phone]
RBC - Joint Broker Matthew Coakes Martin Copeland	Tel: [phone]
Macquarie Capital (Europe) Limited - Joint Broker Alex Reynolds	Tel: [phone]

The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

 

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