Sound Energy, the transition energy company, has announced its unaudited half-year report for the six months ended 30 June 2024. As company report major progress made so far in its development of the Moroccan Tendrara Production Concession (the Concession)

HIGHLIGHTS

(1) Phase 1 Micro LNG (mLNG) project (Phase 1)

Sound Energy has safely completed workover of both wells necessary for first gas, and erected the base and the first layer of mLNG tank shell and initiated the inner tank construction.

While extensive activity continued offsite with our contractor and its sub-contractors designing and constructing plant equipment for delivery on site end 2024. Processed gas is expected to be produced at plant in 2025.

(2) Phase 2 Gas (pipeline) development (Phase 2)

The project has continued progressively in terms project financing from exclusive lead arranger, Attijariwafa Bank, Morocco's largest bank

 Corporate

In June 2024 Sound Energy entered into a binding sale and purchase agreement with Managem SA, in respect of a partial divestment of the Group's Tendrara Production Concession and Grand Tendrara and Anoual exploration permits, through the sale of the Company's subsidiary, Sound Energy Morocco East Limited (SEME) which holds a net 55% working interest in the Tendrara Production Concession and 47.5% interests in the Grand Tendrara and Anoual exploration permits.

Post period, entered into a bridge financing debt facility for up to £1.5 million to provide the Group with additional flexibility

''I am grateful for continued support of all our shareholders and partners, and I can say that the first half of 2024 saw the significant milestone of partnering at Tendrara move closer to fruition.  Managem are a substantial company with a strong base in Morocco. They bring financing and in-depth local experience. Sound and Managem are working closely to effect a smooth transition of Operatorship control at Tendrara.  Whilst the Phase 1 development has been frustrated by delays, equipment, construction and well work has taken place at Tendrara, and a plan for delivery of LNG sales in 2025 established.

"Whilst the first half of the year has been busy with negotiation and agreement of the transaction with Managem, ensuring a smooth transition of operations and progressing Phase 2 towards a final investment decision will ensure the remainder of 2024 will be eventful. The Company will thereafter optimise its portfolio and structure to deliver optimum shareholder value, positioning the Company for production and for further growth. As our key project in Morocco is considered of strategic importance in the country, all efforts must be focused on ensuring a safe and efficient execution of our business plan within the resources available.

"I would like to thank the Ministries in Morocco and ONHYM, our state partner for their continued cooperation and increased support. Finally, a thank you to our staff who have and continue to drive the Company forward,'' Graham Lyon, Executive Chairman said.