Industry Update – Sound Energy

Sound Energy Completes Farm-Out in Morocco: A Milestone for Upstream Development and M&A Activity

London, UK – January 2025

As a leading platform for M&A and upstream development, Africa Oil Week (AOW Energy) congratulates Sound Energy on completing its transformational farm-out agreement in Morocco.

This significant milestone underscores the vibrant opportunities in African oil and gas, and we believe 2025 holds immense potential for further deal-making and upstream advancements.

Sound Energy’s Successful Farm-Out with Managem Sound Energy has finalized the sale of a 55% interest in the Tendrara concession and a 47.5% interest in the Grand Tendrara and Anoual Exploration permits to Managem (MNG CSE), with an effective date of January 1, 2022.

As part of the agreement:

Managem will pay $12 million in Phase 1 and $1 million in Phase 2 development back costs for its 55% interest.

Managem will carry Sound Energy’s remaining 20% interest with up to $24.5 million in future Phase 2 development costs.

Additional considerations include a $1.5 million contingent payment within 12 months of first gas from Phase 2 and funding for Sound Energy’s 27.5% interest in exploration wells on the SBK-1 and M5 prospects.

The completion of this farm-out, achieved within six months of its initial announcement, has boosted Sound Energy’s stock and positions the company to secure full equity funding for the Tendrara project. The partnership with Managem, a leading international mining group majority-owned by Morocco’s Al Mada fund, reflects strong confidence in the region’s resources and economic potential.

Unlocking Morocco’s Natural Gas Potential With Sound Energy’s support ensuring a seamless transition, Managem is well-positioned to drive the development of Tendrara’s resource base. The next key milestone will be the completion of Project 2 debt financing with Attijariwafa Bank, unlocking further development and value creation across the Tendrara resource. Shareholders and stakeholders can also anticipate updates on Phase 1 LNG sales and exploration drilling during Sound Energy’s upcoming investor presentation.

AOWEnergy’s Vision for 2025 This farm-out exemplifies the dynamic landscape of African oil and gas, with strategic partnerships and financial ingenuity fueling progress. At AOW Energy, we celebrate milestones like this, which embody the spirit of collaboration and innovation driving Africa’s upstream sector forward.

As we look to 2025, AOW Energy remains committed to providing a premier platform for stakeholders to forge partnerships, explore new opportunities, and drive sustainable growth