Sound Energy has continued its transition from a pure exploration company to a development and production company throughout 2022. According to Graham Lyon, Executive Chairman of the company, 2022 was a ground breaking year, both literally and figuratively.
When it comes to the finances, the company posted a profit after tax of £4.9 million ($6.1 million) for the year 2022, up from £2.4 million ($3 million) in the year prior.
Speaking of the transition the company has made throughout the year, Lyon noted that in March, ground works began on Phase 1, its micro-LNG project at the Tendrara production concession in Morocco.
The company also made material progress on Phase 2, the further development of the concession via a pipeline, primarily on the financing side.
“Despite a challenging and rapidly-changing global political and economic backdrop, the company was able to successfully deliver a number of milestones in moving towards becoming a revenue generating company,” Lyon said.
He added that the ongoing dispute with the Moroccan authorities over tax continued to be an unhelpful drain on the company’s time and resources; and, post period end, the company entered into a settlement agreement with Morocco tax authority on a phased payment schedule of approximately $2.5 million as a full and final settlement against a claim of approximately $23.95 million.
The company did remind in its report that ONHYM had extended a number of its Moroccan licenses, all subject to Ministry approval. First, the Grand Tendrara Exploration Permits are continued by two years to October 1, 2024 and will involve the drilling of one exploration well with a Triassic objective, this being entry into the First Complementary Period.
The Anoual exploration permit has been extended by 12 months and will also involve the drilling of one exploration well with a Triassic objective. Finally, the Sidi Moktar exploration permit has been granted a 12-month extension to October 9, 2023.
Looking ahead, Lyon said that 2023 will be an important year.
“Irrespective of the challenges we may face, the team remains fully dedicated to delivering its project activities and growing the company as we seek to create material value for the company’s shareholders,” Lyon said.
To contact the author, email andreson.n.paul@gmail.com
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.