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(Alliance News) - Shares rose in Sound Energy PLC on Wednesday after announcing the issue of a 'notice to proceed' to Italfluid Geoenergy Srl on the project contract for liquefied natural gas facilities for the Tendara Concession, onshore Morocco.
Shares in the Moroccan-focused upstream gas company were 11% higher at 1.99 pence on Wednesday in London.
Alongside the notice, an initial payment of USD5 million has been made to Italfluid, allowing the contractor to commence the development of the phase on micro LNG development on Tendara.
A second payment of USD2 million will be made within 30 days of the plant's successful commissioning.
The issue of the notice has also brought the loan note subscription agreement between Sound Energy and Afriquia Gaz SA in full effect, allowing Sound to immediately draw down part of the funds to satisfy the initial payment to Italfluid.
Sound Energy had first entered talks with Italian oil field services provider Italfluid in December 2020 for the construction of a micro LNG plant on the Morocco concession.
"We are delighted to have issued the notice to proceed to Italfluid and to have satisfied all conditions to give effectiveness to both the project contract and LNSA, which means that following receipt of the Initial Payment by Italfluid, the execution phase of our fully funded Phase 1 micro LNG development of the Tendrara Concession will be underway," said Executive Chair Graham Lyon.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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