Sidi Moktar Acquisition: Renegotiated Terms

RNS Number : 6460K

Sound Energy PLC

23 September 2016

 

23 September 2016

Sound Energy plc

("Sound Energy" or the "Company")

Sidi Moktar Acquisition: Renegotiated Terms

Sound Energy, the Mediterranean and African focused upstream company, reported in March 2016 that it had entered into a binding agreement with PetroMaroc Corporation Plc ("PetroMaroc") for the acquisition, subject to conditions precedent including regulatory approval, of a 50% operated interest in three onshore gas permits located in Morocco (together the "Sidi Moktar Licences").

Since that date there have been a number of developments that have impacted that agreement, including the recent increase in the Company's share price.  The parties wish to ensure that their respective interests are protected in a reasonable and fair manner and have therefore entered into a revised binding agreement under which any proceeds from a sale (in whole or in part) of the 21,258,008 new Sound Energy ordinary shares to be issued to PetroMaroc as consideration on completion of Sound Energy's acquisition of the Sidi Moktar Licences (the "Consideration Shares") will be shared between Sound Energy and PetroMaroc as follows: PetroMaroc will receive all proceeds from sale(s) up to 50 pence per Consideration Share and sale proceeds in excess of 50 pence per Consideration Share will be shared equally between PetroMaroc and Sound Energy.  In addition, the long stop date for completion of the Acquisition has been extended to 31 December 2016 or such later date as is necessary to satisfy the remaining conditions precedent.

Sound Energy and PetroMaroc continue to work together collaboratively to ensure the smooth transition of the Sidi Moktar Licences. 

For further information please contact:

Vigo Communications - PR Adviser Patrick d'Ancona Chris McMahon Alexandra Roper	Tel: [phone]
Sound Energy James Parsons, Chief Executive Officer	[e-mail]
Smith & Williamson - Nominated Adviser Azhic Basirov David Jones Ben Jeynes	Tel: [phone]
Cantor Fitzgerald Europe - Broker Sarah Wharry David Porter	Tel: [phone]

 

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