Business
Partial Divestment Update & LNG Strategy
Partial Divestment Update & LNG Strategy.
About this update from Sound Energy Plc
[{"type":"text","content":"\n \nRNS Number : 1266D Sound Energy PLC 17 February 2020 \n\n17 February 2020\nSound Energy plc\n(\"Sound Energy\" or the \"Company\")\n \nPartial Divestment Transaction Update \n \nEarly Production Development Plan with First LNG delivery targeted for 2021\n \n \nSound Energy, the Moroccan focused upstream gas company, announced on 6 November 2019 that the Company had entered into non-binding heads of terms agreement (the \"HOT\") with a privately-owned UK registered company specialising in energy asset development and investment (the \"Purchaser\") in relation to a proposed sale of a substantial proportion of the Company's interest in the Eastern Morocco Portfolio (the \"Proposed Transaction\"). \n \nUnder the terms of the HOT, the Company had granted to the Purchaser an exclusivity period expiring on 14 February 2020 to complete due diligence on the Eastern Morocco Portfolio and to finalise a binding sale and purchase agreement for the Proposed Transaction. \n \nThe Company announces that, whilst the Purchaser has confirmed the satisfactory conclusion of its technical and commercial due diligence to the Company, the Purchaser has not yet demonstrated to the Company's satisfaction the proof of funds required in order to advance the Proposed Transaction and nor has a sale and purchase agreement been finalised. Accordingly, discussions continue with the Purchaser but these discussions are no longer exclusive and there can be no certainty that the Proposed Transaction will proceed or will successfully conclude. \n \nWhilst the Company has continued to pursue the full Field Development Plan underpinning the Tendrara Production Concession (the \"Concession\") award centred around a 120 km pipeline infrastructure, as announced on 6 September 2018, the Company announces that it now plans to prioritise early first cash flows from the Concession and consequently plans to pursue a micro liquified natural gas (\"LNG\") production plan for the TE-5 Horst field within the Concession ahead of the full Field Development Plan being implemented. The implementation of the micro LNG production plan will require, inter alia, the agreement of the Company's joint venture partners in the Concession.\n \nThe Company will, therefore, seek to advance development of the TE-5 Horst field thro...