Sound Energy PLC on Thursday reported a sharply higher loss as costs relating to impairments increased significantly.
The Morocco-focused upstream energy company reported that pretax loss ballooned to £125.1 million in the first half of 2024, from £8.4 million a year ago.
Pertinently, impairment loss on development assets and exploration costs increased to £123.0 million from £4.2 million.
Executive Chair Graham Lyon said: ‘Whilst the first half of the year has been busy with negotiation and agreement of the transaction with Managem, ensuring a smooth transition of operations and progressing phase 2 towards a final investment decision will ensure the remainder of 2024 will be eventful. The company will thereafter optimise its portfolio and structure to deliver optimum shareholder value, positioning the company for production and for further growth.
‘As our key project in Morocco is considered of strategic importance in the country, all efforts must be focused on ensuring a safe and efficient execution of our business plan within the resources available.’
On September 2, Sound Energy confirmed a completion of work over operations regarding the Star Valley Rig 101 to the Tendrara production concession in Morocco.
‘The company has successfully replaced the tubing head spool and ran new corrosion resistant completion tubing into TE-7. The rig will be stacked at the TE-7 site, at no ongoing cost to the company,’ it said.
Sound Energy shares fell 8.0% to 0.71 pence each on Thursday afternoon in London.
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