Sound Energy, the AIM listed transition energy company, has announced that it has received notification from the operator of the Tendrara Production Concession, Mana Energy (55%), of the commencement of the initial commissioning activities for the TE-5 Horst development project in the Tendrara Production Concession and that first gas has entered the gas gathering system ('GGS') in preparation for long term gas production into the micro-LNG plant. Sound Energy retains a 20% equity interest in the Tendrara Production Concession.
The final required component of the gas gathering system, which is being constructed by Mana Energy, the SCADA (Supervisory Control and Data Acquisition) computer, was delivered on 28 November 2025. After installation, gas was safely and successfully flowed from the TE-6 production well, to commence the commissioning of the GGS.
The micro-LNG Plant has been designed, is being constructed and will be operated and maintained by Italfluid Geoenergy S.r.l. ('ITF') with guarantees for plant operability and delivery of LNG to the off-taker, Afriquia Gaz, a leading energy distributor in Morocco. A binding gas sales agreement and associated funding are in place with Afriquia Gaz, with a ten-year commitment from first gas to purchase a contractual quantity of one hundred million normal cubic metres per annum. This is in the context of a take or pay agreement priced in the range of $6-$8.346 per MMBtu which will be determined using an indexed formula which applies a combination of the European TTF and US Henry Hub benchmark indices. The development will use existing wells TE-6 and TE-7, and one new well to deliver the required raw gas volumes into the plant for the Phase 1 development and maintain a ten-year production plateau under the gas sales agreement. Construction of the micro-LNG plant continues at site, with revenue generating LNG sales forecast by the contractor, ITF, to commence late Q1 or Q2 2026.
The Company is grateful for the dedication and professionalism of our partners Mana Energy and ONYHM (25%), contractors and suppliers, for their ongoing partnership and support.
Further announcements will be made, as appropriate, in due course.
Majid Shafiq, Chief Executive Officer, commented:
'We are pleased that we have reached another milestone to bring gas to Moroccan industrial consumers and congratulate the operator, Mana Energy Ltd. I look forward to full commissioning of the micro-LNG facility and delivery of sales gas in the coming months. We are entering an exciting period at Sound Energy as we become a revenue generating company, whilst progressing to the FID for the second phase of development of the entire field, to supply Moroccan power markets.'
Source: Sound Energy
