Business
Pre-Sale Agreement for Disposal of Badile Land
Pre-Sale Agreement for Disposal of Badile Land.
About this update from Sound Energy Plc
[{"type":"text","content":"\n \n \n RNS Number : 2873V\n Sound Energy PLC\n 06 August 2020\n \n \n \n \n \n \n \n \n \n \n 6 August 2020\n \n \n \n \n \n Sound Energy plc \n \n \n (\"Sound Energy\" or the \"Company\")\n \n \n \n \n \n \n \n \n Pre-Sale Agreement for Disposal of Badile Land\n \n \n \n \n \n Sound Energy, the Moroccan focused upstream gas company, announces that it has been notified that it's Italian former subsidiary, Apennine Energy SPA (\"Apennine\"), has entered into a Pre-Sale Agreement with a buyer pursuant to which Appenine has agreed to sell the area of land upon which the Badile exploration well was drilled in 2017 (the \"Badile Land\").\n \n \n \n \n \n On 8 April 2018, the Company completed the disposal of its former Italian portfolio (the \"Disposal\") through the sale of Sound Energy Holdings Italy Limited (\"SEHIL\") to Coro Energy PLC (\"Coro\"). Apennine is a wholly owned subsidiary of Coro. As part of the Disposal, Coro agreed to undertake the restoration and subsequent sale of the Badile Land and to remit any net proceeds from a sale of the Badile Land to the Company following completion. Pursuant to the Disposal the Company had agreed to pay the Badile Land restoration costs (EUR 870,000) to Coro. To date, the Company has paid EUR 237,000 in administrative, permitting and preparatory costs in relation to the proposed restoration activities.\n \n \n Apennine has now entered into a binding Pre-Sale Agreement with a buyer in respect of the proposed sale of the Badile Land pursuant to which the buyer has agreed, in addition to purchasing the Badile Land, to take responsibility for meeting the remaining costs of the restoration of the Badile Land associated with the historical drilling activity on the site. The restoration works will continue to be carried out by Apennine but the costs of these activities will, under the terms of the Pre-Sale Agreement, now be invoiced directly to the buyer and not the Company. \n \n \n Under the Pre-Sale Agreement, the sale of the Badile Land will proceed in two independent stages, being an initial sale of \"Area 1\", on which there are no restoration works to be undertaken, for a consideration of EUR 300,000 and a subsequent sale of \"Area 2\", which remains subject to the requirement for restoration works to be carried out and certified as comp...