Sound Energy puts a deal on purchasing its Morocco assets on hold

UK-based upstream gas company Sound Energy PLC has said that the deal on purchasing its Morocco assets has been put on hold, UK Investor Magazine reported on Monday.

The firm announced that the private energy firm who agreed to buy its assets in Morocco has failed to show proof of funds.

«The Purchaser has not yet demonstrated to the Company’s satisfaction the proof of funds required in order to advance the Proposed Transaction and nor has a sale and purchase agreement been finalized», Sound Energy said.

Sound Energy announced in November 2019 that it is selling its assets in Morocco. At the time, the company said that the deal would be valued at $112.8 million.

At the time, Sound Energy promised to provide the undisclosed purchaser with a «one-year option to acquire a further 9% of Sound Energy’s remaining interest in eastern Morocco portfolio, which has now been put on hold following the update today», the same source concluded.

In May 2019, Sound Energy PLC said that it is considering selling its Morocco assets after it announced that its recent discovery had disappointing results.