Sound Energy extends deadline for Tendrara gas sales agreement talks

Sound Energy shares were in the red on Thursday morning, after the company updated the market on the Tendrara gas sales agreement memorandum of understanding.

The AIM-traded firm had announced on 30 October that it had, in relation to ongoing negotiations over a gas sales agreement for the sale of natural gas production in the Tendrara concession in Eastern Morocco, entered into a binding memorandum of understanding with Morocco's Office National de l'Electricité et de l'Eau Potable (ONEE) - the state power company - on behalf of its partners, including Morocco's L'office National des Hydrocarbures et des Mines.

Under the memorandum, the parties agreed to use their reasonable endeavours to continue negotiations, with a view to entering into a binding gas sales agreement, incorporating the key terms of the memorandum and construed under Moroccan law, prior to the end of calendar year 2019.

“The company confirms that gas sales agreement negotiations continue, and announces that it is in the process of agreeing an amendment to the memorandum of understanding with ONEE in order to extend the period for negotiations of the final gas sales agreement to 31 March,” the board said in its statement.

“Following an agreement in principle, the parties intend to enter into the amendment as soon as is practicable.

“Further announcements will be made, as appropriate, in due course.”

At 1110 GMT, shares in Sound Energy were down 2.54% at 2p.