{"id":12762,"date":"2022-11-01T08:04:18","date_gmt":"2022-11-01T08:04:18","guid":{"rendered":"https:\/\/www.oilnewskenya.com\/?p=12762"},"modified":"2022-11-01T08:06:27","modified_gmt":"2022-11-01T08:06:27","slug":"morocco-sound-energy-announces-project-financing-update","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/morocco-sound-energy-announces-project-financing-update\/","title":{"rendered":"MOROCCO: Sound Energy Announces Project Financing Update"},"content":{"rendered":"<p class=\"eb\"><span class=\"du\">Farm-Out Update<\/span><span class=\"dz\">\u00a0<\/span><\/p>\n<p class=\"ee\"><span class=\"ds\">The Company announced on 9 August 2022\u00a0<span class=\"ef\">that it had initiated a formal farm-out process for the Tendrara Production Concession and the surrounding Grand Tendrara and Anoual exploration permits.\u00a0 The objective of the area-wide farm-out is to seek a co-investing partner in each licence to both fund the expected balance of Phase 2 development costs to first gas of approximately US$60 million net to the Company&#8217;s working interest in the Tendrara Production Concession and also to progress an exploration and appraisal drilling programme in the Grand Tendrara and Anoual exploration permit areas.<\/span><\/span><\/p>\n<p class=\"ee\"><span class=\"eg\">\u00a0<\/span><span class=\"eg\">The Company has received strong interest in the process from a wide range of credible and well-funded parties. Management presentations and data room evaluations are ongoing, and further announcements will be made, as appropriate, in due course.<\/span><span class=\"dz\">\u00a0<\/span><\/p>\n<p class=\"eb\"><span class=\"dp\">Phase 2 Development Financing Update &#8211; Lead Finance Arranger Mandate<\/span><span class=\"dz\">\u00a0<\/span><\/p>\n<p class=\"eb\"><span class=\"dz\">The Company announced on 23 June 2022 that it had entered into\u00a0<span class=\"do\">an Arrangement and Mandate letter (Mandate) with Attijariwafa bank (the Arranger), a Moroccan multinational bank and one of the leading banks in Morocco, under which the Company mandated the Arranger in relation to the arrangement of project debt financing for the development of Sound Energy&#8217;s Tendrara Production Concession (the Agreement).<\/span><\/span><span class=\"dn\">\u00a0<\/span><\/p>\n<p class=\"eh\"><span class=\"ei\">Pursuant to the Agreement, the Arranger was mandated, and provided with exclusivity by the Company for a period of eight months, to arrange a long-term project senior debt facility with a term of no more than 12 years of up to 2.250 billion Moroccan dirhams (approximately US$206 million using current exchange rates) for the partial financing of the currently estimated approximately US$330 million total Phase 2 development cost (including development wells post-first gas) of the Tendrara Production Concession (the Financing).<\/span><span class=\"ei\">\u00a0<\/span><\/p>\n<p class=\"eh\"><span class=\"ei\">Under the terms of the Mandate, the parties agreed to seek to negotiate binding terms for the Financing within 120 days of entry of the Agreement. Whilst discussions between the parties are progressing well, the Company announces that the parties have entered into an amendment to the Mandate in order to extend the date by which they will seek to negotiate binding terms for the Financing to 15 December 2022. For the avoidance of doubt, the eight-month period of exclusivity provided to the Arranger in order to arrange the Financing remains as per the original Mandate.<\/span><span class=\"dz\">\u00a0<\/span><\/p>\n<p class=\"eb\"><span class=\"dp\">Phase 2 Development Gas Sales Agreement<\/span><span class=\"dz\">\u00a0<\/span><\/p>\n<p class=\"eb\"><span class=\"dz\">The Company announced on 30 November 2021\u00a0<span class=\"ej\">that it had entered into a binding gas sale and purchase agreement (the GSA) in respect of the Phase 2 development of the Tendrara Production Concession with Morocco&#8217;s state-owned power company ONEE (Office National de l&#8217;Electricite et de l&#8217;Eau potable) for the sale of natural gas from the Tendrara Concession in Eastern Morocco over a 10-year period.<\/span><\/span><span class=\"ek\">\u00a0<\/span><\/p>\n<p class=\"eb\"><span class=\"ek\">The GSA remains conditional upon, inter alia: (i) all necessary authorisations and permits having been granted for the construction of the Phase 2 gas installations; and (ii) the final investment decision, when taken, by the Tendrara joint venture partners, being approved by the Moroccan Ministries of Transition Energy and Sustainable Development and Economy and Finance;<\/span><span class=\"dn\">\u00a0<\/span><\/p>\n<p class=\"eb\"><span class=\"dn\">Pursuant to the terms of the GSA, the Company announced on 9 March 2022 that it had agreed with ONEE a 90-day extension to the period by which the conditions would be required to be satisfied in order for the GSA to become effective.<\/span>\u00a0<span class=\"dq\">Whilst good progress is being made in order to satisfy the conditions, the Company announces that it has agreed with the parties to the GSA to extend the date by which the conditions should be satisfied to 30 June 2023.<\/span><\/p>\n<p class=\"a\"><span class=\"dv\">\u00a0<\/span><span class=\"dl\">Commenting, Garry Dempster (CFO) said:<\/span><span class=\"dl\">\u00a0<\/span><\/p>\n<p class=\"eb\"><span class=\"dl\">&#8220;Alongside the Company continuing to make good progress on executing the Tendrara Phase 1 gas development, I am pleased with the progress that the Company is making in advancing project funding for the proposed Tendrara Phase 2 gas development. Strategically, for Sound Energy, its licence partner ONHYM and for Morocco, this is a critical project that will propel the Company&#8217;s future growth along with forming a key pillar of Morocco&#8217;s energy strategy centred around the energy transition.<\/span><span class=\"dl\">\u00a0<\/span><\/p>\n<p class=\"eb\"><span class=\"dl\">There is a complex series of inter-related steps necessary to be advanced and completed in order that the Company and its partner, ONHYM, can take a final investment decision on the development. Consequently, and whilst the Company is making good progress in this regard, I am pleased that we have agreed an extension to the back-stop date of the ONEE GSA to June 2023 to allow us to focus on delivery of the various pre-FID activities, including conclusion of ongoing discussions with EPC contractors to execute development activities.<\/span><span class=\"dl\">\u00a0<\/span><\/p>\n<p class=\"eb\"><span class=\"dl\">Furthermore, I am encouraged by the strong level of interest in the ongoing farm-out process, from well-established and notable industry players. This is testimony not just to the increased appetite for investment in well-positioned gas portfolios such as ours but to the quality of the underlying opportunity upon which Sound Energy&#8217;s strategy is centred.<\/span><span class=\"dl\">\u00a0<\/span><\/p>\n<p class=\"eb\"><span class=\"dl\">We look forward to further positive updates as the various planned milestones are delivered.&#8221;<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Farm-Out Update\u00a0 The Company announced on 9 August 2022\u00a0that it had initiated a formal farm-out process for the Tendrara Production Concession and the surrounding Grand Tendrara and Anoual exploration permits.\u00a0 &hellip; <a href=\"https:\/\/www.oilnewskenya.com\/index.php\/morocco-sound-energy-announces-project-financing-update\/\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":8449,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[7442,7446,11],"tags":[10783,10555,4064,1051,1629,10301,9372,7689,10782],"class_list":["post-12762","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-countries","category-north-africa","category-top-news","tag-anoual-exploration-permit","tag-attijariwafa-bank","tag-fid","tag-gsa","tag-morocco","tag-office-national-de-lelectricite-et-de-leau-potable","tag-onhym","tag-sound-energy","tag-tendrara-phase-2","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1280%2C720&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-3jQ","jetpack-related-posts":[{"id":12558,"url":"https:\/\/www.oilnewskenya.com\/index.php\/morocco-sound-energy-provides-phase-2-development-financing-launch-of-tendrara-farm-out-process\/","url_meta":{"origin":12762,"position":0},"title":"MOROCCO: Sound Energy Provides Phase 2 Development Financing &#038; Launch of Tendrara Farm-Out Process","author":"","date":"August 10, 2022","format":false,"excerpt":"Phase 2 Development Financing and Farm-Out Update\u00a0 As announced on 23 June 2022, the Company mandated Attijariwafa bank, a Moroccan multinational bank and one of the leading banks in Morocco, to arrange a long-term project senior debt facility of up to c.US$250 million for the partial financing of the currently\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":12955,"url":"https:\/\/www.oilnewskenya.com\/index.php\/morocco-sound-energy-provide-tendrara-project-financing-update\/","url_meta":{"origin":12762,"position":1},"title":"MOROCCO: Sound Energy Provide Tendrara Project Financing Update","author":"","date":"December 13, 2022","format":false,"excerpt":"Partner and possible Farm-Out Update\u00a0 The Company announced on 9 August 2022\u00a0that it had initiated a formal farm-out process to identify a partner for the Tendrara Production Concession and the surrounding Grand Tendrara and Anoual exploration permits.\u00a0 The objective of the area-wide approach is to seek a co-investing partner in\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":10436,"url":"https:\/\/www.oilnewskenya.com\/index.php\/morocco-sound-energy-increases-participating-interests-in-the-anoual-greater-tendrara-exploration-permits\/","url_meta":{"origin":12762,"position":2},"title":"MOROCCO: Sound Energy Increases Participating Interests in the Anoual &#038; Greater Tendrara Exploration Permits","author":"","date":"June 14, 2021","format":false,"excerpt":"Sound Energy has entered into a sale and purchase agreement with Schlumberger Holdings II Limited to acquire the entire issued share capital of Schlumberger Silk Route Services Limited. Acquisition Highlights: The Group will have increased participating interests in the Anoual and Greater Tendrara exploration permits in Eastern Morocco by 27.5%\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":14375,"url":"https:\/\/www.oilnewskenya.com\/index.php\/morocco-sound-energy-signs-binding-agreement-for-the-sale-of-share-capital-of-sound-energy-morocco-east-limited\/","url_meta":{"origin":12762,"position":3},"title":"MOROCCO: Sound Energy Signs Binding Agreement for the Sale of Share capital of Sound Energy Morocco East Limited","author":"","date":"June 18, 2024","format":false,"excerpt":"Sound Energy has announced the entry into a binding Sale and Purchase agreement for the partial divestment of the Company's Moroccan assets by way of the disposal by the Company of the entire issued share capital of Sound Energy Morocco East Limited (SEME) to Managem SA for a total value\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2024\/06\/Morocco-Tendrara.png?fit=1200%2C1200&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2024\/06\/Morocco-Tendrara.png?fit=1200%2C1200&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2024\/06\/Morocco-Tendrara.png?fit=1200%2C1200&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2024\/06\/Morocco-Tendrara.png?fit=1200%2C1200&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2024\/06\/Morocco-Tendrara.png?fit=1200%2C1200&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":15569,"url":"https:\/\/www.oilnewskenya.com\/index.php\/morocco-sound-energy-provides-tendrara-development-anoual-exploration-permits-operational-update\/","url_meta":{"origin":12762,"position":4},"title":"MOROCCO: Sound Energy Provides Tendrara Development, Anoual Exploration Permits Operational Update","author":"","date":"January 26, 2026","format":false,"excerpt":"Sound Energy\u00a0has announced the following operational update on the\u00a0Tendrara Phase I Production Concession and Anoual Exploration Permits. Tendrara Gas Gathering System Commissioning Further to our announcement of 8 December 2025 regarding commencement of initial commissioning activities for the TE-5 Horst development, the Operator, Mana Energy Ltd, has informed the Company\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2024\/04\/Morocco-Tendrara.png?fit=1200%2C1200&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2024\/04\/Morocco-Tendrara.png?fit=1200%2C1200&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2024\/04\/Morocco-Tendrara.png?fit=1200%2C1200&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2024\/04\/Morocco-Tendrara.png?fit=1200%2C1200&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2024\/04\/Morocco-Tendrara.png?fit=1200%2C1200&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":15807,"url":"https:\/\/www.oilnewskenya.com\/index.php\/morocco-sound-energy-reports-conditional-sale-of-sound-energy-meridja-limited-and-relinquishment-of-arran-energys-exploration-interests\/","url_meta":{"origin":12762,"position":5},"title":"MOROCCO: Sound Energy Reports Conditional Sale of Sound Energy Meridja Limited &amp; Relinquishment of Arran Energy&#8217;s Exploration Interests","author":"Samuel Kamau Mbote","date":"May 26, 2026","format":false,"excerpt":"Sound Energy has announced it has entered into a binding Sale and Purchase Agreement for the divestment of the Company's interests in the Tendrara Exploitation Concession (20%), onshore Morocco, by way of the disposal of the entire share capital of Sound Energy Merijda Limited (SEML) to Managem SA. The Company\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2024\/06\/Morocco-Tendrara.png?fit=1200%2C1200&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2024\/06\/Morocco-Tendrara.png?fit=1200%2C1200&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2024\/06\/Morocco-Tendrara.png?fit=1200%2C1200&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2024\/06\/Morocco-Tendrara.png?fit=1200%2C1200&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2024\/06\/Morocco-Tendrara.png?fit=1200%2C1200&ssl=1&resize=1050%2C600 3x"},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/12762","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/comments?post=12762"}],"version-history":[{"count":2,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/12762\/revisions"}],"predecessor-version":[{"id":12764,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/12762\/revisions\/12764"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media\/8449"}],"wp:attachment":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media?parent=12762"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/categories?post=12762"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/tags?post=12762"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}