REG - Sound Energy PLC - Morocco Operational Update

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RNS Number : 2878Q  Sound Energy PLC  26 January 2026

26 January 2026

 

Sound Energy PLC

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

 

Morocco Operational Update - Tendrara Development and Anoual Exploration
Permits

 

Sound Energy PLC (AIM: SOU), the AIM quoted transition energy company, is
pleased to announce the following operational update on the Tendrara Phase I
Production Concession and Anoual Exploration Permits.

 

Tendrara Gas Gathering System Commissioning

Further to our announcement of 8 December 2025 regarding commencement of
initial commissioning activities for the TE-5 Horst development, the Operator,
Mana Energy Ltd, has informed the Company that both wells (TE-6 and TE-7) have
now been successfully and safely flowed to commission and their respective
parts of the Gas Gathering System (GGS) tested.  The wellheads of these wells
are approximately 2 km apart. The GGS consists of the wellheads, flowlines,
choke valves, heat exchangers, liquid drop-out vessels and flares, so it is a
major milestone to have this section of the surface facilities completed and
tested in full.

 

Tendrara Gas Fired Power Generation

The Tendrara site has nine high-performance engines, designed to meet the
operational power requirements of the site. These consist of seven 2,260 kVA
gas engines and two 1,600 kVA diesel engines, all of which have been
integrated into containerised systems, ensuring an uninterrupted energy supply
in extreme desert conditions of up to 47 degrees Celsius. In the coming weeks,
the gas-fired generators will be commissioned and tested using natural gas
from one of the Tendrara Phase 1 development wells (following the separation
of liquids), potentially displacing more costly diesel which will have the
benefit of reducing operating costs and Scope 1 emissions.

 

Anoual Exploration Permits Extension

The Company is also pleased to report that the Minister for Energy Transition
and Sustainable Development, and the Minister of the Economy and Finance have
approved an extension to the Company's Anoual Exploration Permits.

 

The Anoual Exploration Permits (the "Exploration Permits") cover 8,873 km(2)
in Eastern Morocco in which the Company holds a 27.5% non-operating interest,
Morocco's Office National des Hydrocarbures et des Mines ("ONHYM") holds a 25%
non-operating interest, and the remaining 47.5% interest is held by the
Operator, Mana Energy Ltd.

 

As a result of these amendments the Complementary Period of the Exploration
Permits has been extended to 7 September 2028 with a firm work programme
commitment to drill one exploration well with a primary Triassic objective. In
the event of the exploration well being successful the Operator has the option
to elect to acquire a 150 km(2) 3D seismic dataset and drill an additional
exploration well targeting the Triassic interval. Entry into the Complementary
Period required relinquishing a portion of the area covered by the Exploration
Permits such that the retained area covers 5,031 km(2).

 

The Company anticipates that the operator, Mana Energy Ltd ("Mana Energy"),
will fulfil its firm commitment to drill the M5 exploration well, with Sound
Energy's share of M5 well drilling costs being capped at US$2.57 million. This
will be carried out by Managem S.A.

 

Corporate

Further to the announcement of 18 September 2025 in relation to its financial
requirements for 2026 as set out in its interim financial statement, the
Company continues to review its funding options and expects to update the
market in due course regarding bridging finance to first gas.

 

 

Majid Shafiq, Chief Executive Officer, commented:

 

"We are very encouraged by continued operational progress at Tendrara, with
both TE-6 and TE-7 successfully flowed as part of the commissioning of the Gas
Gathering System and look forward to the commissioning of gas fired power
generation. These achievements mark another important milestone for the Phase
I development and reflect strong execution by the operating team.

The approval of the extension to the Anoual Exploration Permits is very
positive too, securing additional time and clarity to advance a well-defined
exploration programme across a highly prospective acreage position in Eastern
Morocco."

 

 

IMPORTANT NOTICE

This announcement does not constitute or form part of any offer or invitation
to purchase, or otherwise acquire, subscribe for, sell, otherwise dispose of
or issue, or any solicitation of any offer to sell, otherwise dispose of,
issue, purchase, otherwise acquire or subscribe for, any security in the
capital of the Company in any jurisdiction.

 

The information contained in this announcement is not to be released,
published, distributed or transmitted by any means or media, directly or
indirectly, in whole or in part, in or into the United States or to any US
Person. This announcement does not constitute an offer to sell, or a
solicitation of an offer to buy, securities in the United States or to any US
Person. Securities may not be offered or sold in the United States absent: (i)
registration under the Securities Act; or (ii) an available exemption from
registration under the Securities Act. The securities mentioned herein have
not been, and will not be, registered under the Securities Act and will not be
offered to the public in the United States.

 

This announcement does not constitute an offer to buy or to subscribe for, or
the solicitation of an offer to buy or subscribe for, Ordinary Shares in the
capital of the Company or any other security in any jurisdiction in which such
offer or solicitation is unlawful. The securities mentioned herein have not
been, and the Ordinary Shares will not be, qualified for sale under the laws
of any of Canada, Australia, the Republic of South Africa or Japan and may not
be offered or sold in Canada, Australia, the Republic of South Africa or Japan
or to any national, resident or citizen of Canada, Australia, the Republic of
South Africa or Japan. Neither this announcement nor any copy of it may be
sent to or taken into the United States, Canada, Australia, the Republic of
South Africa or Japan. In addition, the securities to which this announcement
relates must not be marketed into any jurisdiction where to do so would be
unlawful.

 

Note regarding forward-looking statements

This announcement contains certain forward-looking statements relating to the
Company's future prospects, developments and business strategies.
Forward-looking statements are identified by their use of terms and phrases
such as "targets" "estimates", "envisages", "believes", "expects", "aims",
"intends", "plans", "will", "may", "anticipates", "would", "could" or similar
expressions or the negative of those, variations or comparable expressions,
including references to assumptions.

 

The forward-looking statements in this announcement are based on current
expectations and are subject to risks and uncertainties, which could cause
actual results to differ materially from those expressed or implied by those
statements. These forward-looking statements relate only to the position as at
the date of this announcement. Neither the Directors nor the Company undertake
any obligation to update forward looking statements, other than as required by
the AIM Rules for Companies or by the rules of any other applicable securities
regulatory authority, whether as a result of the information, future events or
otherwise. You are advised to read this announcement and the information
incorporated by reference herein, in its entirety. The events described in the
forward-looking statements made in this announcement may not occur.

 

Neither the content of the Company's website (or any other website) nor any
website accessible by hyperlinks on the Company's website (or any other
website) is incorporated in, or forms part of, this announcement.

 

Market Abuse Regulation (MAR) Disclosure

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 as it forms part of UK domestic law by virtue of the
European Union (Withdrawal) Act 2018 ('MAR'). Upon the publication of this
announcement via Regulatory Information Service ('RIS'), this inside
information is now considered to be in the public domain.

 

 

For further information please visit www.soundenergyplc.com
(https://www.soundenergyplc.com/) , follow on X @soundenergyplc
(https://x.com/soundenergyplc?lang=en)  and LinkedIn or contact:

 

 Sound Energy plc c/o Flagstaff Communications

 Majid Shafiq CEO
 Flagstaff Strategic and Investor Communications                sound@flagstaffcomms.com

 Tim Thompson, Mark Edwards, Alison Allfrey                     +44 (0)207 129 1474
 Zeus - Nominated Adviser and Broker                            +44 (0)20 3829 5000

 James Joyce, Darshan Patel, Liv Highton (Investment Banking)

 Simon Johnson (Corporate Broking)

 

About Sound Energy PLC:

Sound Energy is a transition energy investment opportunity, listed on the UK
AIM market of the London Stock Exchange, with operations in Morocco centred
around onshore exploration, development and production of gas and advancing
renewable power generation initiatives. Gas is the focal transition fuel and
critical to the country's energy policy to move to sustainable, local
renewable energy, away from imported coal and hydrocarbon fuels. The company
has a 25-year development concession with a micro- LNG development underway at
Tendrara, the first major onshore gas resource in Morocco, and a larger Phase
2 piped gas project awaiting FID. Small scale LNG will supply the industrial
market, whilst the piped gas development is for the power sector. Exploration
wells are funded to support infrastructure led exploration potential. Together
these give the company significant opportunities for scalable growth on its
28,000 square km of onshore permits. Sound Energy is therefore playing a
pivotal role in responding to rising energy demand in Morocco and facilitating
the energy transition. This is further enhanced by Sound's recent early-stage
diversification into opportunities in renewable power generation and hydrogen
exploration in Morocco. Sound has strong stakeholder engagement and
partnerships with leading Moroccan companies, thereby leveraging in-country
expertise in renewable energy projects and its gas developments. Financially,
the company is focused on revenue targets from Phase 1 LNG production,
judicious investment for the Phase 2 piped gas development and prudent cost
management and balance sheet deleveraging to fund asset development
opportunities.

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