Sound Energy PLC - LNG Heads of Terms
LNG Heads of Terms with
Signature of Heads of Terms and Grant of Exclusivity
The Company is pleased to announce that, on
Exclusivity has been granted to the Partner in relation to the Proposed Transaction until
HOT - LNG Gas Sales Agreement
Under the HOT, the parties have agreed to use their reasonable endeavours to negotiate and enter into a gas sales agreement (the "Proposed GSA") pursuant to which
Proposed Partner Project Funding
In order to accelerate the delivery of first gas under the Phase 1 Development Plan, the Partner has also agreed under the HOT to use reasonable endeavours to conclude definitive agreements in respect of a proposed partial financing for the development ("Proposed Partner Financing") through:
· a secured commercial loan of
Update re mLNG Production Plant
The Company continues to progress negotiations with potential service providers in relation to the design, procurement, construction and operation of the gas processing and liquefaction unit (the "mLNG Facility") required for the Phase 1 Development and with additional funding partners for the balance of the finance required for the Phase 1 Development.
Despite COVID-19 outbreak restrictions, which have delayed progress of the Phase 1 Development Plan, the Company aims to take a Final Investment Decision ("FID"), subject to the approval of the Concession joint venture partners, during H2 2020.
The Company cautions that whilst the HOT is binding during its Term in the grant of Exclusivity and in its recording of the commitment by the Company and the Partner to use reasonable endeavours to conclude the Proposed Transaction based on the key commercial terms set out in the HOT, the Proposed Transaction remains subject to, inter alia, the negotiation and entry of further binding agreements, to the approval of the Concession joint venture partners and to an FID on the Phase 1 Development being taken.
Further announcements will be made, as appropriate, in due course.
"We are delighted to announce the signature of these heads of terms and the award of exclusivity for the purchase of LNG from the TE-5 Horst.
In spite of challenging current market conditions we have made significant progress, and these heads of terms, mark an important step forward towards the delivery of the Company's phase 1 production development plan for the TE-5 Horst at the Tendrara Concession."
For further information please contact:
Tel: 44 (0)20 7390 0230
Cenkos Securities - Nominated Adviser
Tel: 44 (0)20 7397 8900
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Tel: (0)20 3657 0050
The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
mmBtu means million British thermal units
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