MOROCCO: Progress Made Towards Phase 1 LNG GSA in Tendrara Production Concession

Sound Energy has announced that material progress has continued to be made towards satisfying the remaining conditions precedent to the Phase 1 LNG Gas sales Agreement (the LNG GSA).

The LNG GSA, in relation to the Phase 1 liquified natural gas based development of the Company’s Tendrara Production Concession, is in addition to the Phase 2 development gas sales agreement announced by the Company on 30 November 2021 in relation to the wider, pipeline-based, development plan, and had been expected to become unconditional on or before 17 December 2021.

Reflecting ongoing progress, the parties to the LNG GSA now anticipate execution of final documentation, including in relation to the key loan note agreement described in the Company’s announcement of 29 July 2021, and the waiver of any outstanding conditions precedent shortly – with documentation in the final stages of preparation. As a result, the LNG GSA long stop date has now been revised to 31 December 2021.

Graham Lyon, Sound Energy Chairman, commented:

‘With much progress made we are very pleased to be nearing the finalisation and execution of documentation which will enable the Phase 1 LNG GSA to become unconditional and for the Phase 1 Notice to Proceed to be provided thereafter. I look forward to updating shareholders in this regard in due course.’