The price of shares in AIM-listed upstream oil and gas firm Sound Energy (LON:SOU) dropped by 3.99% to 1.59p (as of 16:15 BST) after the firm posted interim results for the half year ended 30th June. The company booked no revenues during the period but losses for the period narrowed significantly due to the lack of exploration costs.
Executive Chairman Graham Lyon commented: “Despite the challenging business environment brought on by the Covid-19 global pandemic and exacerbated in the oil and gas sector by a dispute between Russia and Saudi Arabia which led to an increase in supply just as demand was falling due to the economic impact of the pandemic, the first half of 2020 was an active and productive period for the Company as it reset its strategy to transition towards becoming a cash generating Company with significant exploration potential. The period concluded with the announcement of a key milestone, that the Company had entered into a heads of terms with, and granted exclusivity to, a Moroccan conglomerate, to provide partial financing for its Phase 1 micro LNG project and for the purchase of the LNG produced from the TE-5 Horst under the first phase of development. In addition during, the Company also received EIA approval for the Tendrara Gas Export Pipeline and Central Processing Facility (”CPF”) whilst continuing to progress the finalisation of binding terms for the proposed Gas Sales Agreement (”GSA”) with Office National de l’Electricité et de l’Eau Potable (”ONEE”) for the second phase of development of the TE-5 Horst“.