Sound Energy Completes Sale of Moroccan Assets to Managem for $45.2 Million

Rabat – Sound Energy has successfully concluded the partial divestment of its Moroccan gas assets to the Managem Group, a deal valued at up to $45.2 million.

This move is part of Sound Energy’s ongoing strategy to unlock significant value from its energy projects in Morocco.

Graham Lyon, Executive Chairman of Sound Energy, expressed enthusiasm about the deal. “This is a transformative transaction for Sound Energy, unlocking significant value,” he said. “We look forward to the next chapter of Tendrara development and exploration in Morocco.”

As part of the transaction, Sound Energy will retain a minority stake in the Tendrara concession and the Grand Tendrara and Anoual exploration permits.

Specifically, it will hold 20% of the Tendrara concession through its subsidiary Sound Energy Meridja Limited (SEM), and a 27.5% stake in the Grand Tendrara and Anoual exploration areas via Arran Energy Holdings Limited (AEHL).

Managem’s involvement includes significant financial commitments. The company will provide funding for the next phase of the Tendrara project, as well as support for exploration activities at both Grand Tendrara and Anoual.

Additionally, Managem has agreed to cover past expenditures and provide a contingent payment based on production milestones.

Under the terms of the deal, Managem acquires the following:

– 55% of the Tendrara concession, while Sound Energy keeps a 20% interest through SEM,

– 47.5% of the Grand Tendrara exploration permit and 47.5% of the Anoual exploration permit, with Sound Energy maintaining a 27.5% stake in each through AEHL.

The deal also includes a financial package of up to $24.5 million in funding to support the remaining 20% stake in the Tendrara concession’s Phase 2 development.

Managem will also provide an additional $3.6 million for the Grand Tendrara exploration and $2.6 million for Anoual to support upcoming drilling operations.

As part of the transition, Sound Energy will continue to assist Managem to ensure a smooth handover. This strategic sale marks a transformative step for Sound Energy as it focuses on future opportunities in Morocco’s growing energy sector.