This major development follows an agreement announced in June between Sound Energy, a UK-based gas exploration company, and Managem. The agreement, subject to regulatory approval, outlined the transfer of Sound Energy’s Moroccan subsidiary to Managem.
Today’s news marks a crucial step forward as Sound Energy’s Board of Directors officially approves the sale. This removes a key hurdle for Managem, which is majority-owned by Al Mada, Morocco’s royal investment holding company.
“We are delighted to receive formal board approval for this transaction,” stated Graham Lyon, Sound Energy’s CEO. “We are committed to fulfilling all remaining requirements and ensuring a smooth handover process in the near future.”
This acquisition signifies a strategic diversification for Managem, previously known for its focus on mining and commodities like manganese and cobalt. To facilitate this transition into gas production, Managem has established a dedicated energy division.
Through acquiring Sound Energy Maroc Est, Managem gains significant assets: Roughly 55% of the Tendrara, operating concession, 47.5% stake in the Grand Tendrara exploration license and 47.5% stake in the Anoual exploration license.
These assets were secured by Managem through a competitive bidding process. The company plans to utilize the acquired resources to supply gas to Moroccan industries, with the potential for LNG production and export.
The estimated cost of acquiring Sound Energy Maroc Est is approximately $12 million (119 million Moroccan dirhams). Managem will also assume an additional liability of around $24.5 million (224 million dirhams).
MN/te/fss/abj/APA