REG - Sound Energy PLC - Exploration Permit Update

Sound EnergyAnnouncement

30/04/2024 07:00

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RNS Number : 4924M  Sound Energy PLC  30 April 2024

 

The information contained within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulation ("MAR")
(EU) No. 596/2014, as incorporated into UK law by the European Union
(Withdrawal) Act 2018. Upon the publication of this announcement, this inside
information is now considered to be in the public domain.

 

30(th)  April 2024

Sound Energy plc

 

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

 

Exploration Permit Update

 

Sound Energy, the transition energy company, is pleased, further to the update
provided by the Company on 22 December 2022 and to continued constructive
discussions with Morocco's L'Office National des Hydrocarbures et des Mines
("ONHYM"), to provide a further update regarding amendments to its exploration
permits at Anoual (the "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 Amendments and entry into the Complementary Period remain subject to
Moroccan Energy and Finance Ministerial approval.

 

Anoual Exploration Permits

 

The Company is also pleased to report that ONHYM has now agreed on a 18-month
extension to the initial period of the Anoual Exploration Permits to 8 July
2024.

 

Subject to Ministerial approval, the length of the Anoual Initial Period will
now be 6 years and 10 months, commencing on or about 8 September 2017 and
ending on or about 7 July 2024. The work programme commitments for the Initial
Period, details of which are provided below, will also be amended.

 

In addition, subject to Ministerial approval, to the extension to the Initial
Period, ONHYM has also approved the merging of the optional First
Complementary and the Second Complementary Periods under the Anoual
Exploration Permits into a single Complementary Period consisting of 3 years
and 8 months to or about 7 March 2028 (the "Anoual Complementary Period").

 

As a result, the Anoual Exploration Permits now have a total duration of 10
years and 6 months and the remaining work commitments under the Anoual
Exploration Permits, as revised, will be as follows:

 

Initial Period of 6 years and 10 months from or about 8 September 2017:

 

·    The acquisition of FTG-aerogradiometry and 600 kilometres of 2D
seismic. This requirement has historically been fulfilled by the Company.

·    Geological and Geophysical Studies. This requirement has historically
been fulfilled by the Company.

 

The Company has therefore fully satisfied the work commitments under the
Initial Period of the Anoual Exploration Permits and the Company confirms it
has submitted an application to enter the Anoual Complementary Period
commencing on or about 7 July 2024.

 

The work commitment under the Anoual Complementary Period, of a further 3
years and 8 months to conclude on or about 7 March 2028 will require:

 

·    a firm commitment to the drilling of one exploration well with a
Triassic objective and the option, at the discretion of the Company, as the
operator of the Anoual Exploration Permits, of the acquisition of 150 square
kilometres of 3D seismic if the firm commitment exploration well is positive
and drilling of one further exploration well with a Triassic objective.

 

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:

 

"We are pleased to have secured these improved and extended terms across our
Anoual exploration permits and progress into the next phase of exploration
across these permits.  We thank our partner ONHYM for their continued support
during the constructive discussions we have had and, as partners, we await the
necessary Ministerial approvals to conclude such that we can progress with our
exploration activities.  The Company looks forward to updating stakeholders
on our drilling plans to unlock the compelling potential of this basin
leveraging the gas infrastructure we are developing at the TE-5 Horst."

 

 

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

 

Forward looking statements

 

Certain statements in this announcement are forward-looking statements which
are based on the Company's expectations, intentions and projections regarding
its future performance, anticipated events or trends and other matters that
are not historical facts. Generally, the words 'will', 'may', 'should',
'continue', 'believes', 'targets', 'plans', 'expects', 'aims', 'intends',
'anticipates' or similar expressions or negatives thereof identify
forward-looking statements. These statements are not guarantees of future
performance and are subject to known and unknown risks, uncertainties and
other factors that could cause actual results to differ materially from those
expressed or implied by such forward-looking statements. Factors that would
cause actual results or events to differ from current expectations, intentions
or projections might include, amongst other things, changes in oil prices,
changes in equity markets, failure to establish estimated petroleum reserves,
political risks, changes to regulations affecting the Company's activities,
delays in obtaining or failure to obtain any required regulatory approval,
failure of equipment, uncertainties relating to the availability and costs of
financing needed in the future, the uncertainties involved in interpreting
drilling results and other geological, geophysical and engineering data,
delays in obtaining geological results and other risks associated with
exploration, development and production. Given these risks and uncertainties,
readers should not place undue reliance on forward-looking statements.

 

END

 

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