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(Sharecast News) - Sound Energy said in its half-year report Thursday that it was nearing first gas production from its Tendrara concession in Morocco by the end of the year, highlighting progress on both development and diversification initiatives.
The AIM-tradedcompany said it had shifted the main contract for the phase one micro-LNG project at Tendrara from a vendor-financed model to a traditional engineering, procurement and construction contract.
After the period end, operator Mana Energy secured a $25m local bank debt facility to fund the change, of which Sound's share was $5m.
It added that work was also advancing on the planned phase two pipeline development at Tendrara, with an updated front-end engineering and design study commissioned and the selection of an EPC contractor under way.
Beyond Tendrara, Sound said it had set up HyMaroc to explore for natural hydrogen and helium in Morocco, and signed a binding agreement to form a joint venture to produce and sell renewable energy through access to the country's medium-voltage grid.
It said all of its exploration licences were in the process of being extended or renewed.
"The company is now on the cusp of first revenue generation with Tendrara gas production and a funded second phase project development awaiting FID," said executive chairman Graham Lyon.
"It has two funded exploration wells to be drilled and has begun diversification with two exciting new ventures."
At 1440 BST, shares in Sound Energy were down 6.92% at 0.61p.
Reporting by Josh White for Sharecast.com.
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