Sound Energy losses widen as it continues Morocco development

Sound Energy reported a group operating loss from continuing operations of £12.63m in its final results on Thursday, narrowing slightly from the £12.92m a year earlier.

The AIM-traded firm, which is pre-revenue, said its loss after tax from continuing operations widened to £16.42m, however, from £11.75m, with its basic and diluted loss for the year ended 31 December from both continuing and discontinued operations coming in at 1.54p, from 0.66p.

In Morocco, it noted the completion of the interpretation of seismic data for the Eastern Moroccan licences during the period.

Environmental impact assessment approvals for the 120 kilometre, 20 inch pipeline and gas treatment plant and compression station were received in January and March of this year, respectively.

The environmental impact assessment approval for the Sidi Moktar 2D seismic acquisition programme was received in November, with a marketing process for the Eastern Moroccan licences undertaken.

On the corporate front, Sound said it saw a “structural reduction” in administrative expenses in 2019, with further material reductions post-period end.

Its cash balance as at 31 December was £4.6m.

“An equity placing to raise gross proceeds of £2.4m at 10p per ordinary share completed in June 2019,” the board highlighted in its statement.

It also pointed to an equity placing to raise gross proceeds of £1.5m at 2p per ordinary share, which was announced in December and completed in January.

At 1514 BST, shares in Sound Energy were down 11.3% at 1.02p.