are to sell some of its 47.5% stake in its Eastern Morocco Portfolio for $112.8 million to a privately-owned UK company specialising in energy asset development.
On Wednesday Sound Energy told investors that it entered into a non-binding heads of terms agreement to sell its stake for $54.3 million in cash and $58.5 million in carry for future capital expenditure on the portfolio.
The East Morocco portfolio contains the Tendrara, Greater Tendrara and the Anoual Permit concessions, part of a joint venture with Schlumberger and Morocco’s state vehicle ONHYM.
Shares in Sound Energy were trading 12% lower at 6p following the announcement.
Sound Energy began exploring options for its Eastern Morocco portfolio in May this year, with 23 companies signing non-disclosure agreements with a number of non-binding offers.
The company told investors it still believes the Tendrara basin requires further exploration drilling to “fully unlock the basin potential”.
Shares have fallen from a high of 30p in January to 6p today.
Simon Davies, the Company's Chairman, commented: "The Proposed Transaction being progressed on an exclusive basis funds development of the Tendrara project, provides early monetisation of a substantial part of our established gas resources and retains upside for our shareholders through both future gas production and further exploration drilling."
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Matt Lofgran, Chief Executive Officer of Nostra Terra explained the company decision, commenting, “We have taken the view that because the asset is loss-making and given we are not the operator, despite the fact that we feel that we could improve operations significantly, ultimately the best resolution is for NTI to transfer its interest and have no past or future liability."
“Transport refuelling is just the tip of the iceberg for demand for hydrogen from renewable sources,” said Dr Graham Cooley, CEO of ITM Power, “and this partnership will be well positioned to participate in this exciting and rapidly growing industry."