Sound Energy PLC Eastern Morocco Update (9783G)
20 March 2020 - 7:41PM
UK Regulatory
TIDMSOU
RNS Number : 9783G
Sound Energy PLC
20 March 2020
20 March 2020
Sound Energy plc
("Sound Energy" or the "Company")
Eastern Morocco Update
Sound Energy, the Moroccan focused upstream gas company, is
pleased to provide the following Eastern Morocco update, confirming
receipt of a further Environmental Impact Assessment ("EIA")
approval and land corridor rights in respect of the Tendrara Gas
Export Pipeline ("TGEP").
EIA of the gas treatment plant and compression station
(including liquefaction)
On 17 February 2020 the Company announced its plan to pursue the
first phase of TE-5 Horst development at the Tendrara Production
Concession (the "Concession") via a micro liquified natural gas
("LNG") production plan. Negotiations are ongoing with equipment
providers for the LNG production facility solution and with
industrial customers and distributors in relation to a gas offtake
agreement.
The Company is pleased to announce that it has now received the
EIA approval from the Moroccan Ministry of Energy, Mines and
Environment related to the building of the proposed gas treatment
plant and compression station ("CPF") at the Concession, including
the option for gas liquefaction. Receipt of the CPF EIA approval
follows meetings of the National Committee from the Moroccan
Ministry of Energy, Mines and Environment to review the CPF EIA
held on 10 October 2019 and 28 January 2020 and receipt of EIA
approval for the 120km TGEP connecting the proposed CPF to the
Gazoduc Maghreb Europe pipeline ("GME"), as announced by the
Company on 13 January 2020.
Inclusion of gas liquefaction within the CPF EIA approval
enables the LNG development planned as Phase 1 of the Concession
field development plan, with the TGEP led full field development of
the Concession following as Phase 2.
Tendrara Gas Export Pipeline corridor rights
The Company continues to progress the TGEP led full field
development of the Concession alongside the LNG production strategy
and advises that, following discussions with representatives of
Morocco's Ministry of Interior and of the Forestry Department to
obtain rights through a long-term lease agreement for a 50m wide
corridor along the entire 120 km length of the TGEP, formal land
access approvals have been received from the Ministry of Interior
and the Forestry Department and the Company will now seek to agree
the tariff for the land access with the Ministry.
The land access approvals now received relate to land covering
99.9% of the entire length of the 50m wide TGEP corridor and the
remaining land approvals required, covering land required for the
three principal blacktop roads and five river crossings along the
TGEP route, are to be sought at a later date, after Final
Investment Decision is taken.
The Company believes that the developments described above are
important milestones in the process of developing and
commercialising the Concession and as the Company progresses
towards the Final Investment Decision (when binding development
capital commitments are to be made) for each phase of the
Concession field development.
Tendrara Gas Sales Agreement ("GSA") MOU
The Company confirms that GSA negotiations continue but
announces that a binding GSA is not expected to be entered into
prior to 31 March 2020. In order to extend the period for
negotiations of the final GSA with Morocco's Office National de
l'Electricité et de l'Eau Potable ("ONEE"), the state power company
of Morocco , beyond 31 March 2020, the Company expects to enter
into a further extension to the previously entered GSA MOU
shortly.
COVID-19 outbreak and safety measures
The safety of our employees, contractors and stakeholders is
paramount and in line with recommendations from both the UK and
Moroccan Governments, the Company has implemented continuity plans
enabling all personnel at the Company's offices in Sevenoaks and
Rabat to work remotely.
The Company also advises that the investor event which had been
planned for the end of March/beginning of April will be postponed
until further notice.
Further announcements with respect to matters above will be made
in due course, as appropriate.
For further information please contact:
Vigo Communications - PR Adviser Tel: 44 (0)20 7390
Patrick d'Ancona 0230
Chris McMahon
Sound Energy questions@soundenergyplc.com
Cenkos Securities - Nominated Adviser Tel: 44 (0)20 7397
Ben Jeynes 8900
Russell Cook
Turner Pope Investments (TPI) Ltd - Broker
Zoe Alexander
Andy Thacker
The information communicated within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
This information is provided by RNS, the news service of the
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contact rns@lseg.com or visit www.rns.com.
END
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