Sound Energy announces placing to fund Moroccan exploration programme

Moroccan focused upstream gas company Sound Energy will place 30.82m new ordinary shares as part of an effort to raise $15m to strengthen its cash position ahead of its high-impact three-well exploration programme.

The group issued the shares at a placing price of 37p each on Monday morning, with admission expected to take place on or around 6 July.

As a result of the placing, Sound's issued share capital rose to roughly 1.05bn ordinary shares.

Sound revealed on Friday that it had finalised a new geochemical and basin modelling study across its Tendrara-Lakbir, Matarka and Anoual permits in Eastern Morocco.

The AIM-listed group confirmed that hydrocarbon charge across its Eastern Morocco portfolio was predominantly generated from a carbonate rich marine source rock of Devonian age and that there was sufficient gas charge available to fill the high graded TAGI leads and prospects.

Brian Mitchener, Sound's exploration director, said "We expect this new oil play to be the target of our forthcoming third exploration well. In addition, this basin model significantly de-risks the charge available to our individual prospects."

As of 1030 BST, Sound shares had lost 3.82% to 38.45p.