Sound Energy has continued its transition from a pure exploration company to a development and production company throughout 2022. According to Graham Lyon, the company’s executive chairman, 2022 was a breakthrough year, both literally and figuratively.
On the financial side, the company reported an after-tax profit of 4.9 million pounds ($6.1 million) for 2022, up from 2.4 million pounds ( 3 million dollars) from the previous year.
Speaking about the transition the company has made throughout the year, Lió noted that in March ground work began on Phase 1, its micro-LNG project at the Tendrara production concession in Morocco.
The company also made material progress in Phase 2, the further development of the concession through a gas pipeline, mainly in terms of financing.
“Despite a challenging and rapidly changing global political and economic environment, the company was able to successfully achieve a number of milestones to move towards becoming a revenue-generating company,” said Lyon.
He added that the ongoing dispute with Moroccan authorities over taxes continued to be a waste of the company’s time and resources; and, after the end of the period, the Company entered into a settlement agreement with the Moroccan tax authority on a schedule of phased payments of approximately $2.5 million as a full and final settlement against a claim approximately $23.95 million.
The company recalled in its report that ONHYM had extended some of its Moroccan licenses, all subject to the approval of the Ministry. First, the Grand Tendrara exploration permits are held for two years until October 1, 2024 and will involve the drilling of an exploration well with a Triassic target, being the entry into the First Period complementary
Anoual’s exploration permit has been extended by 12 months and will also involve the drilling of an exploration well with a Triassic target. Finally, the Sidi Moktar exploration permit has been granted a 12-month extension to October 9, 2023.
Looking ahead, Lyon said 2023 will be an important year.
“Regardless of the challenges we may face, the team remains fully dedicated to delivering on its project activities and growing the company as we seek to create material value for the company’s shareholders,” Lyon said.
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