REG - Sound Energy PLC - Exploration Permit Update

Sound EnergyAnnouncement

19/07/2024 10:45

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RNS Number : 0014X  Sound Energy PLC  19 July 2024

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19 July 2024

 

Sound Energy plc

 

("Sound Energy", the "Company" and together with its subsidiary undertakings,
Sound Energy Morocco East Ltd and Arran Energy Holdings Ltd, the "Group")

 

Exploration Permit Update

 

Sound Energy, the transition energy company, is pleased, further to the update
provided by the Company on 30 April 2024 and the continued discussions with
Morocco's L'Office National des Hydrocarbures et des Mines ("ONHYM"), to
provide a further update regarding further amendments to the Company's
exploration permits at Anoual (the "Additional Amendments"), and entry into
the optional Complementary Period under the exploration permits at Anoual.

 

The Anoual exploration permits cover 8,873 square kilometres in Eastern
Morocco (the "Anoual Exploration Permits").

 

The Additional Amendments and entry into the Complementary Period remain
subject to Moroccan Energy and Finance Ministerial approval.

 

Anoual Exploration Permits

 

The Company is pleased to report that ONHYM has now agreed, in place of the
18-month extension previously announced by the Company, on a longer 24-month
extension to the initial period of the Anoual Exploration Permits, due to
Force Majeure, ending on or about 7 January 2025.

 

Subject to Ministerial approval, the length of the Anoual Initial Period will
therefore now be 7 years and 4 months, commencing on or about 8 September 2017
and ending on or about 7 January 2025. The amended work programme commitments
for the Initial Period remain as announced on 30 April 2024 and have
historically been fully satisfied.

 

In addition, in reflecting the extension to the Initial Period and subject to
Ministerial approval, ONHYM has also agreed an extension to the expiry of the
Anoual Complementary Period (of the existing 3 years and 8 months) is to
conclude on or about 7 September 2028.

 

As a result of ONHYM's agreement to the further extension to the Initial
Period and the extension to the conclusion of the Anoual Complementary Period,
the Company confirms that it intends to progress the application to enter the
Anoual Complementary Period on these revised terms.

 

Subject to Ministerial approval, the Anoual Exploration Permits now therefore
have a total duration of 11 years and the remaining work commitments under the
Anoual Exploration Permits, being the work commitment under the Anoual
Complementary Period remain as announced by the Company on 30 April 2024.

 

The Company plans to fulfil the firm commitment for the Anoual Complementary
Period with the drilling of the M5 exploration well detailed in the Company's
announcement of 9 August 2022.

 

John Argent, Sound Energy's VP Geoscience, commented:

 

"Once again we thank our partner ONHYM and greatly appreciate their support
and, as partners, we await the necessary Ministerial approvals allowing us to
progress with the drilling of the M5 prospect.  This is an opportunity to
discover a much thicker TAGI reservoir section, across a very large structure
in the centre of the Tendrara Basin, with the prize of unlocking significant
potential gas volumes.  We look forward to updating our stakeholders with the
timing of these exciting drilling plans."

 

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

 

 

For further information visit www.soundenergyplc.com follow on twitter
@soundenergyplc or contact:

 

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

 Tim Thompson                                     sound@flagstaffcomms.com

 Mark Edwards

 Alison Allfrey

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

 Sound Energy

 Graham Lyon, Executive Chairman

                                                  Tel: 44 (0)20 7220 0500

 Cavendish Capital Markets - Nominated Adviser

 Ben Jeynes

 Peter Lynch

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

                                                  Tel: 44 (0)20 3983 9263

 Gneiss Energy Limited - Financial Adviser

 Jon Fitzpatrick

 Paul Weidman

 Doug Rycroft

 

 

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