Sound Energy is farming out part of its interest in the Tendrara Production concession. The concession contains the TE-5 well discovery with 2C 377 BCF.

The field development plan underpinning this production concession includes:

• Development of the gas resources, a 377 bcf (2C) gas discovery (TE-5), in a phased manner with Phase I being implementation of a micro LNG development scheme and Phase II being development of a larger scale central processing facility (CPF) and gas export pipeline
• Phase I is based upon deployment of field processing and mobile LNG facilities to facilitate gas production and to tap into the existing and growing Moroccan industrial gas market. Phase I will supply an annual contractual quantity of 100 million standard cubic metres of gas (approximately 4 billion standard cubic feet of gas per year) over a 10 year period

• Phase I will consist of utilising the existing well stock of TE-5, TE-6 and TE-7 with additionally drilling one new well when required to maintain the 10 year period of production. Phase II would develop the remaining discovered resources via additional wells, a CPF and a gas export pipeline to monetise gas via the domestic gas to power market.  Phase II adds a further 66 mmscf/d gas as pipeline gas to sell into the Moroccan gas-to-power market, over a 10-year period
• Environmental Permits have been approved for the construction of a the microLNG plant for Phase I and the Phase II gas treatment plant and compression station (“CPF”) and a 120 km 20 inch Tendrara Gas Export Pipeline (“TGEP”) connecting the CPF and the delivery point to the Gazoduc Maghreb Europe pipeline. The front end engineering and design (“FEED”) has also been completed for the for both the Phase II CPF and TGEP.
• Subject to the conclusion of ongoing negotiations and JV approval, the Company expects that it will be in a position to take a final investment decision on Phase I during 2020.