REG - Sound Energy PLC - Project Financing Update

Sound EnergyAnnouncement

15/03/2023 07:00

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RNS Number : 9754S  Sound Energy PLC  15 March 2023

 

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15 March 2023

Sound Energy plc

("Sound Energy" or the "Company")

 

Project Financing Update

 

 

Sound Energy, the transition energy company, is pleased to provide a project
financing update in relation to the Company's Tendrara Production Concession,
onshore Morocco.

 

Phase 2 Development - Lead Finance Arranger Mandate Update

 

The Company announced on 23 June 2022 that it had entered into an Arrangement
and Mandate letter ("Mandate") with Attijariwafa bank (the "Arranger"), a
Moroccan multinational bank and one of the leading banks in Morocco, under
which the Company mandated the Arranger in relation to the arrangement of
project debt financing for the Phase 2 development of Sound Energy's Tendrara
Production Concession (the "Agreement").

 

Pursuant to the Agreement, the Arranger was mandated, and provided with
exclusivity by the Company for a period of eight months, to arrange a
long-term project senior debt facility with a term of no more than 12 years of
up to 2.250 billion Moroccan dirhams (approximately US$215 million using
current exchange rates) for the partial financing of the currently estimated
approximately US$330 million total Phase 2 development cost (including
development wells post-first gas) of the Tendrara Production Concession (the
"Financing").

 

In December 2022, the Company announced that the parties had agreed to amend
the Mandate to seek to negotiate binding terms for the Financing by 15 March
2023 whilst also agreeing to an extended period of exclusivity provided to the
Arranger under the Mandate to 1 June 2023 in order to arrange the Financing.

 

Significant progress is being made with the Arranger, who has recently
completed legal and technical due diligence in respect of the proposed
Financing. Whilst additional pre-Financing aspects such as Phase 2 Engineering
contracts remain subject to award, finalisation and review, the parties have
now moved on to more detailed financial structuring of the proposed Financing,
particularly in respect of taxation, and consequently the parties have entered
into a further amendment to the Mandate in order to extend the date by which
the parties will seek to negotiate binding terms for the proposed Financing to
28 April 2023.

 

 

 

Commenting, Graham Lyon (Executive Chairman) said:

 

"The Phase 2 senior debt process is continuing to move forward favourably. It
is a significant and complex undertaking for all parties involved, and I am
pleased that the level of engagement that we have with Attijariwafa bank and
our respective legal, tax and technical advisors is very collaborative and
positive. I am sure all stakeholders support the construction of a robust,
well structured financing arrangement.  We look forward
to providing further updates as the process moves forward."

 

For further information please contact:

 

 Vigo Consulting - PR Adviser               Tel: 44 (0)20 7390 0230

 Patrick d'Ancona

 Finlay Thomson

 Sound Energy                               chairman@soundenergyplc.com (mailto: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 - Broker
 Richard Hail                               Tel: 44 (0)7789 865 095

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

 Jon Fitzpatrick / Paul Weidman

 

 

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