REG - Sound Energy PLC - Project Financing Update

Sound EnergyAnnouncement

27/04/2023 07:00

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RNS Number : 6169X  Sound Energy PLC  27 April 2023

 

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27 April 2023

Sound Energy plc

("Sound Energy" or the "Company")

 

Project Financing Update

 

 

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

 

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").

 

Under the Agreement, as amended and extended, the Arranger was mandated, and
provided with exclusivity by the Company until 1 June 2023, 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$223 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"), with the parties seeking to negotiate binding terms for the
Financing by 28 April 2023.

 

Whilst the Company has been advised by the Arranger that it has now concluded
its due diligence in respect of the Financing, Arranger Credit Committee
consideration of the Financing has been delayed due to local Eid celebrations
and is not expected to be held prior to 28 April 2023. With Arranger Credit
Committee consideration of the Financing re-scheduled, the parties continue to
work in good faith in advancing the Financing and further announcements will
be made, as appropriate in due course.

 

On the 8 June 2022 the Company announced a £4 million placing of new ordinary
shares at 2.0 pence per ordinary share (the "Placing"). At the time the
Company envisaged the net proceeds of the Placing would be sufficient to
continue to advance the Company's projects and meet the Company's working
capital obligations through to April 2023. Over the subsequent 10 months the
Company has scheduled its work accordingly and managed its corporate cost base
such that its remaining cash resources are now expected to be sufficient to
meet the Company's present working capital requirements through to July
2023.

 

Commenting, Graham Lyon (Executive Chairman) said:

 

"The Phase 2 senior debt process has completed its due diligence phase with
recommendations to Attijariwafa' s credit committee prepared by the Arranger.
We now await the conditioned financing offer which we expect shortly from the
bank's committee. 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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