Sound Energy secures $2.2 million financing amid Tendrara focus
Sound Energy PLC on Friday announced that the Tendrara gas gathering system in Morocco has been fully tested and commissioned as it reported that it secured financing.
The transition energy-focused firm said it entered a €1.3 million term loan facility with an ‘international investment bank’.
It said the loan will provide access to working capital before the receipt of revenue from liquefied natural gas sales from the Tendrara phase one development.
The firm said: ‘The Tendrara gas gathering system has been fully tested and commissioned, and the LNG tank was successfully tested during the quarter, representing important milestones in the development of the Tendrara phase 1 project.’
Sound Energy said that it expects start of commercial gas sales at Tendrara in early third quarter of 2026.
Amounts drawn under the loan will attract an interest rate of 20% per 120 days, accruing daily. The firm raises £500,000 in a placing via the issue of 10.0 million new shares at 5.0p each.
Sound Energy shares fell 40% to 5.12 pence each on Friday afternoon in London.
The €1.3 million loan facility and the £500,000 raise are worth a total of around $2.2 million.
‘This funding strengthens the company’s balance sheet and provides the necessary resources to advance both projects as key components of our strategy to deliver gas and renewable energy developments in Morocco,’ said Chief Executive Officer Majid Shafiq.
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