On Friday, UK gas company Sound Energy PLC (SOU.L) announced that it has sold its subsidiary, Sound Energy Morocco East Limited, to Morocco’s largest mining company, Managem.



According to Sound Energy, the transaction totals $45.2 million and is crucial for advancing production in the eastern Morocco gas field, Tendrara. Managem stated that the Tendrara field will begin production next year, with an expected annual output of 100 million cubic meters.



Managem plans to boost production at the Tendrara field to 280 million cubic meters once it is connected to an existing gas pipeline linking Morocco to Spain, the company added. Managem’s CEO, Imad Toumi, mentioned in the statement that the group is actively seeking other gas assets in Africa.



As part of the deal, Sound Energy will retain a 20% interest in the Tendrara Production concession and a 27.5% working interest in both the Grand Tendrara Exploration Concession and the Anoual exploration permit.



Commenting, Graham Lyon (Executive Chairman of Sound Energy) said: "We are very pleased to have entered into this binding Share sale to an excellent counterparty Managem SA.  The share sale transaction of our UK company subsidiary, the Permits Owner, is structured to allow a smooth transition to Managem whilst bringing Sound Energy two new exciting exploration drills, substantial funding for the phase 2 development and past costs. There is also a production bonus once Phase Two gas is delivered".



https://www.share-talk.com/graham-lyon-executive-chairman-of-sound-energy-plc-sou-l-interview/





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