The Moroccan focused upstream gas company said in a statement it signed a “heads of terms with a consortium comprising Enagas, Elecnor and Fomento for the front end engineering and design (“FEED”) and conditional construction and financing of all the infrastructure required, including a 20 inch pipeline and facilities, to commercialize the Company’s existing gas discovery in Eastern Morocco.”
“The Consortium will finalize plans to secure access to some US$184 million of development capital that will be required to fund the Project,” Sound Energy said.
“This is a hugely important milestone for our Company and I am delighted that Sound Energy is playing such a pivotal role in unlocking the first significant scale indigenous gas production in Morocco,” Sound Energy’s CEO James Parsons commented.
“For Sound Energy and its shareholders, this innovative BOOT structure means that the Company is now firmly on the pathway to commercializing our existing and future gas resources in Eastern Morocco, all without additional equity dilution,” he said.
Once on-stream, Sound Energy said it expects the eastern Moroccan gas discovery to produce 60 million standard cubic feet per day of natural gas.