Sound Energy has published its activities for the first half of 2020 through a statement from its newly appointed Executive Chairman (appointed in February; within the period under review), Graham Lyon.

The Chairman’s statement addressed the Eastern Morocco Partial Disposal, Phase 1 of its Micro LNG project, Phase 2 of the Tendrara TE-5 Development, EIA of the Tendrara Gas Export Pipeline and CPF, Licensing and Corporate Information of the company.

It highlighted the challenges caused by the coronavirus pandemic on the activities of the firm. It said the first half allowed the firm to reset its strategy to transition towards becoming cash-generating Company with significant exploration potential.

Excerpts from the Executive Chairman’s statement:

On the Eastern Morocco Partial Disposal; “Whilst a partial disposal of its Eastern Morocco portfolio is not a strategic priority of the Company, normal business development discussions are ongoing in this regard. There is no certainty that any of these discussions will advance and the Company’s current key priority is to deliver a final investment decision on its proposed Phase 1 development of the Tendrara Production Concession during 2020.”

On the first phase of the Micro LNG Development; “In June, the Company was pleased to announce that heads of terms had been entered into with a Moroccan conglomerate to permit exclusive discussions to negotiate definitive agreements for both the purchase of LNG to be produced from the TE-5 Horst as well as partial financing for the Phase 1 development by the Moroccan conglomerate. An LNG Gas Sales Agreement is currently being negotiated pursuant to which the joint venture will commit, over a 10 year period, to supply an annual contractual quantity of 100 million standard cubic metres of (liquefied) gas from the Phase 1 development, based upon the key commercial terms set out in the heads of terms.”

On the second phase of the Tendrara Gas Export Pipeline and CPF; “In January 2020, the Company announced receipt of the EIA approval from the Moroccan Ministry of Energy, Mines and Environment to build and operate a 120km 20-inch gas pipeline connecting the CPF to the Gazoduc Maghreb Europe pipeline. This was followed by the ministerial approval of the EIA for the CPF in March.”

On licensing; The Company announced in July that it had “successfully concluded a renegotiation of the terms of its Anoual Exploration Permit in order to realign the Company’s committed exploration work programme in Eastern Morocco so that it dovetails more efficiently with the proposed phasing of our Phase 1 Development Plan at the Tendrara Production Concession in a manner that underscores both our confidence in the potential of the basin as a future significant gas producing province and our ability to deploy capital judiciously across the portfolio.”

On the firm Corporate activities in the half; he noted his appointment as the EC in February. He highlighted the appointment of Mohammed Seghiri as Chief Operating Officer in April and he praised the COO’s knowledge and experience. He also praised the wealth of financial experience the company is enjoying due to the appointment of David Blewden as an Independent non-executive director in July.