I’m away north of the border so a flash blog today.
Sound has announced its unaudited half-year report for the six months ended 30 June 2021, highlights include development of the Tendrara Production Concession, advancement of Phase 1 Micro LNG engineering and commercial gas sales contracts.
Post period execution of conditional LNG sales agreement with Afriquia Gaz, the agreement covers a 10 year Take or Pay liquefied natural gas sale and purchase at Tendrara. Advanced negotiation on $18 million loan from Afriquia Gaz, a condition precedent, to be satisfied by 29th October 2021
Progressed discussions with Italfluid, Micro LNG facilities provider on Lease to Own facilities and Operations and Maintenance contract and advancement of Phase 2 pipeline development discussions on long term take or pay gas sales agreement.
In exploration and growth a post period Anoual exploration permit extended for a further year and post period completion of acquisition of Schlumberger Silk Route Services Limited.
A successful restructuring of €28.8 million corporate loan notes in April 2021, a reduction in administrative expenses by approximately 40% compared with 2020, receipt of circa €183,000 first payment for disposal of Badile land in Italy and post period equity subscription by Afriquia Gaz of £2.0 million.
Graham Lyon, Executive Chairman said:
“A huge amount of work has been completed so far this year and much remains to be concluded during the remainder of 2021. Having secured a long-term LNG sales agreement with Afriquia Gaz, we have established a route to market for our gas and following completion of the proposed $18M loan from Afriquia Gaz, the Company will have financing for the Sound Energy share of the Phase 1 development. With important catalysts to come in the near term, I look forward to updating shareholders further as we progress towards the development phase of the project and to becoming a revenue generating business. I would like to thank all our staff, contractors, partners, noteholders, shareholders and other stakeholders for their commitment and support. I feel confident that Sound Energy is moving in the right direction and is building a business that will deliver real value for our investors by playing our part in fuelling the energy transition.”
I will comment more on Sound next week after talking to Graham Lyon.