Sound Energy enters into letter of exclusivity for Tendrara Phase 1 Development
Sound Energy has provided an update in relation to the Company’s proposed micro liquefied natural gas (‘mLNG’) phase 1 development project for the TE-5 Horst (the ‘Phase 1 Development’) at the Tendrara Production Concession, onshore Morocco.
Letter of Exclusivity
The Company has announced that Sound Energy Morocco East Limited (‘SEMEL’), the Company’s wholly owned subsidiary, has entered into a letter of exclusivity (the ‘LoE’) with Italfluid Geoenergy pursuant to which the parties have agreed to use their reasonable endeavours to negotiate and enter into a binding project contract which will on entry commit Italfluid to design, construct, commission, operate, maintain and let to SEMEL a mLNG Plant which can produce LNG. The mLNG Plant, which will also treat and process raw gas from the Phase 1 Development prior to liquefaction, is a substantial part of the surface facilities required to be built and operated as part of the Phase 1 Development.
Under the LoE, the Group has granted a period of exclusivity to Italfluid until 31 March 2021 during which time the parties have agreed to use their reasonable endeavours to seek to conclude and enter into the Project Contract on the basis of key commercial terms set out under the LoE and as summarised below:
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