Casablanca – Sound Energy PLC, the transition energy company, has officially completed the sale of its Moroccan assets to Managem SA for a total value of up to $45.2 million, as confirmed in a statement released today.

The transaction, first announced in June 2024, marks a significant milestone for Sound Energy as it divests the entire issued share capital of its subsidiary, Sound Energy Morocco East Limited (SEME). With an effective date retroactive to January 1, 2022, the deal strengthens Managem’s foothold in Morocco’s gas exploration sector, while Sound Energy retains key interests in its Moroccan operations.

Under the terms of the agreement, Sound Energy will retain a 20% stake in the Tendrara Production Concession through its subsidiary, Sound Energy Meridja Limited (SEM), and will hold a 27.5% interest in both the Grand Tendrara and Anoual exploration permits via Arran Energy Holdings Limited (AEHL). Managem, in turn, has acquired a 55% stake in the Tendrara concession, as well as 47.5% stakes in both exploration permits.

Transformative deal and future commitments

The sale includes a substantial financial package, with Managem committing to provide funding for Sound Energy’s ongoing projects. This includes up to $24.5 million in funding for the planned Phase 2 development of the Tendrara concession. In addition, the agreement provides for a contingent production payment of $1.5 million, payable within one year of the first gas production from Phase 2, as well as additional funding for exploration wells in the Grand Tendrara and Anoual areas, totaling $6.2 million.

“Completing the sale of SEME Limited is a transformative moment for Sound Energy,” said Graham Lyon, Executive Chairman of Sound Energy. “This deal not only unlocks significant value for the company, but also positions us to continue our involvement in the development of the Tendrara gas field and its surrounding areas. We look forward to supporting Managem as they lead the next phase of operations.”

Ongoing operations and support

Despite the sale, Sound Energy’s subsidiaries will continue to operate the Tendrara production concession and exploration permits, ensuring continuity in the development and exploration efforts in Morocco. The company will also provide support to Managem during the transition period to facilitate a seamless handover of operations.

The successful completion of this sale follows approval from the Moroccan government in October, reinforcing Sound Energy’s commitment to its Moroccan projects and the country’s energy sector. With this deal, Sound Energy remains actively involved in the region’s energy landscape while realizing significant value from its assets.

About Sound Energy

Sound Energy is a UK-based energy company focused on the development of gas assets in Morocco and other regions. The company has been active in the exploration and production of natural gas, with a strong commitment to transition energy and sustainability. The sale of SEME marks the conclusion of an important chapter in its Moroccan operations, setting the stage for new opportunities moving forward.

About Managem

Managem is a Moroccan multinational mining company with a growing focus on natural gas exploration and production. The acquisition of SEME aligns with Managem’s strategy to expand its energy portfolio and strengthen its position as a key player in Morocco’s evolving energy market.