StockMarketWire.com - Sound Energy said a proposed investor in its Moroccan assets had not sufficiently demonstrated that it had the funding required to complete the deal by a 14 February deadline.
Talks were continuing with the proposed partner, which Sound Energy has described as 'a privately-owned UK registered company specialising in energy asset development and investment'.
However, the talks were now no longer being conducted on an exclusive basis.
Sound Energy said the purchaser had confirmed the satisfactory conclusion of its technical and commercial due diligence.
However, it also stated that 'the purchaser has not yet demonstrated to the company's satisfaction the proof of funds required in order to advance the proposed transaction'.
Separately, Sound Energy said it had changed its plans for the Moroccan assets to now focus on the development of a micro-liquified-natural-gas, or LNG, production plant.
A final investment decision on the little LNG plant, which would chill natural gas for export, was expected during the second quarter of 2020.
Sound Energy said the new plan would allow for its resources to be sold faster, with the potential for a larger, full pipeline-led development to be added at a later date.
As 31 January, the company had net cash of around $7.3m.
It said it expected its existing cash resources to be sufficient to meet its working capital requirements through to a LNG final investment decision.
At 9:28am: [LON:SOU] Sound Energy PLC share price was -0.54p at 1.66p
Story provided by StockMarketWire.com
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