British company Sound Energy confirmed on Tuesday that Attijariwafa bank (AWB) is an agent for the implementation of a senior debt facility to finance the Tendrara field production concession phase 2.
The Moroccan bank has been tasked with raising nearly $250 million for the project, which will partially finance the development costs of the second phase of the project.
The operator estimates the total budget to complete this stage at approximately $330 million, according to a Sound Energy statement issued today.
“We continue to make progress in negotiations with a number of external banking consultants and analysts to finalize the terms of Phase 2 senior debt within 120 days,” the company’s management said in the release, announcing the selection of AWB as financing agent.
Sound Energy has also announced the launch of a process to find banking and financial partners for the Tendrara production concession and the surrounding Greater Tendrara and Anoual exploration licenses.
To this end, the firm has appointed Gneiss Energy Limited, a corporate finance consultancy firm in the energy sector, to oversee the establishment of these partnerships.
Additionally, the statement announced that Gneiss Energy will be responsible for identifying a co-investor for each license on behalf of its principal in order to fund the expected balance of the Phase 2 development costs on the one hand, and advance the exploration and appraisal drilling program on the other.
“We have made progress on the senior debt facility for the Tendrara project, which is expected to fund the majority of the Phase 2 development costs,” Graham Lyon, Sound Energy’s executive chairman, stated in the release.
Regarding the exploration component, Sound Energy remains optimistic about the potential of the deposit.
“Our reassessment of the potential of the Grand Tendrara and Anoual exploration licenses has identified three high-grade drilling targets, two of which have already encountered gas shows,” Lyon said in the release.
“We believe that mechanical stimulation is the key to unlocking the potential of the TAGI gas reservoir, as we did with the TE-5 Horst discovery. Importantly, future discoveries in this area have the potential to be commercialized through the planned infrastructure to be built at the TE-5 Horst development.”
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