Sound Energy prepares for 'potentially transformational' drilling works

Sound Energy assured shareholders it was ready for a new and "potentially transformational" phase of drilling across its Moroccan assets.

Losses widened 2.54% to £4.07m as the explorer recorded revenues of £35,000 up fourfold year-on-year.

Sound said it remained in "a strong financial position" for the second half of 2018 with cash balances of $19.4m as of 30 June following its successful equity placing of $15m throughout the half.

The AIM-listed group updated investors on its operational progress at its Tendrara, Anoual and Matarka assets on Thursday, noting that its two-pronged strategy to develop existing discoveries, while also undertaking high impact exploration in the surrounding areas had made progress in de-risking the exploration potential.

James Parsons, Sound's chairman and chief executive, said: "Our priority so far this year has been the de-risking in Eastern Morocco of both our existing discovery and our significant exploration potential. The company is now ready for this next, potentially transformational, period of exploration drilling."

As of 1000 BST on Thursday, Sound shares were roughly flat at 39.26p.