REG - Sound Energy PLC - Exploration Collaboration Agreement

Sound EnergyAnnouncement

28/10/2024 07:00

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RNS Number : 7624J  Sound Energy PLC  28 October 2024

28 October 2024

Sound Energy plc

 

("Sound Energy", the "Company" and together with its subsidiary undertakings
the "Group")

 

Hydrogen and Helium Exploration Collaboration Agreement

 

Sound Energy, the transition energy company, is pleased to announce entry into
an Exploration Collaboration Agreement (the "Agreement") with Getech Group Plc
("Getech"), a global leader in locating essential energy and mineral resources
crucial for the energy transition.

 

Pursuant to the Agreement, the parties will collaborate to seek to explore for
natural hydrogen and helium in Morocco, with the initial phase of the
Agreement comprising a joint regional screening study to identify areas of
potential interest for more detailed assessment by the parties.

 

Getech will leverage its proprietary, world-renowned gravity and magnetics
database, along with its advanced geoscience platform, Globe™, and machine
learning algorithms, to identify prospective regions for geological hydrogen
and helium in Morocco and Sound Energy will contribute to the Agreement with
specific regional geoscience knowledge and extensive operational expertise,
from our long experience and established in-country capabilities as the
largest onshore hydrocarbon exploration permit holder in Morocco, to
facilitate any future exploration process.

 

Both companies will aim to jointly negotiate exclusive rights for the
exploration and exploitation of hydrogen and helium resources in Morocco,
progressing towards necessary geophysical and drilling activities to unlock
potential deposits. Sound Energy will be responsible for its own costs in
respect of activities performed pursuant to the Agreement.

 

John Argent, VP Geoscience at Sound Energy, commented:

"This agreement with Getech, a company with renowned geological expertise in
the energy and mining sectors, is a significant first step forward in our
strategy to expand our exploration activities into new transition energy
resources, starting in Morocco. With our established presence and operational
expertise, combined with Getech's innovative geoscience tools, we are
well-positioned to lead the way in seeking to unlock Morocco's hydrogen and
helium potential."

 

Richard Bennett, CEO at Getech, commented:

"We look forward to collaborating with Sound Energy to unlock the potential of
natural hydrogen and helium resources in Morocco. Our advanced geoscience
solutions and AI capabilities will play a crucial role in driving
cost-effective exploration in this highly promising region."

 

Further announcements will be made, as appropriate, in due course.

For further information visit www.soundenergyplc.com follow on X
@soundenergyplc, LinkedIn, or contact:

 

 Flagstaff Strategic and Investor Communications  Tel: 44 (0)20 129 1474

 Tim Thompson                                     sound@flagstaffcomms.com

 Mark Edwards

 Alison Allfrey

 Sound Energy                                     chairman@soundenergyplc.com (mailto:chairman@soundenergyplc.com)

 Graham Lyon, Executive Chairman

 Cavendish Capital Markets - Nominated Adviser    Tel: 44 (0)20 7220 0500

 Ben Jeynes

 Peter Lynch

 Zeus - Broker                                    Tel: 44 (0)20 3829 5000

 Simon Johnson

 Gneiss Energy Limited - Financial Adviser        Tel: 44 (0)20 3983 9263

 Jon Fitzpatrick

 Paul Weidman

 Doug Rycroft

 

Background

Morocco is emerging as a highly prospective market for natural hydrogen
exploration, thanks to its favourable geological conditions and strategic
location. The country's extensive onshore basins, rich in subsurface
resources, are prime candidates for natural hydrogen discoveries. Morocco's
commitment to renewable energy and its supportive regulatory framework further
enhance its role as a key player in the global energy transition.

 

Natural (sometimes also referred to as "white", "gold" or "native") hydrogen
has the potential as a future disruptor in the energy markets, undercutting
green and other low-carbon hydrogen energy sources, produced without CO2
emissions, at an estimated cost of around $1 per kilogram. Getech's workflows
build on the understanding of genetic factors involved in developing a natural
hydrogen system; categorising these into sources, migration paths, reservoirs,
traps and seals in much the same way as the petroleum industry has
successfully done for many decades.

 

Helium, crucial across sectors such as medical, electronics, aerospace,
nuclear and telecommunications, is considered a "critical raw material" by the
USA, EU, and Canada due to its irreplaceable nature. Helium and natural
hydrogen are often found in the same reservoirs, significantly boosting the
economic potential of such discoveries.

 

END

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