AIM and London-based upstream gas firm Sound Energy Plc (LON:SOU) saw their share price dip to a 52-week low yesterday.
The news puts the company at the fore of many an avid investor’s agendas for the day, with online forum’s reeling at the news that the firm’s shares dipped as low as 11p during trading on Tuesday.
The gas company are largely based in Europe and Africa and have made efforts this year to commercialise Moroccan gas by signing an agreement with a consortium to build a 20-inch gas pipeline in the East of the country. The company said that the consortium, made up of Spain’s Enagas (BME:ENG), Elecnor (BME:ENO) and Fomento (BME:FCC), has been awarded the deal under a build-own-operate-transfer (BOOT) structure.
In a statement earlier in the year, the Sound Energy said:
“The Consortium will finalise plans to secure access to some $184 million of development capital that will be required to fund the project”.
The firm was pleased to announce the commencement of drilling at their TE-10 venture some five days ago – the second of three planned explorations at the Eastern Moroccan site – stating that preliminary estimates hedged a 26% chance of success, though the company said updates will be reported as and when appropriate. This well covers the North East Lakbir prospect in the Company’s Greater Tendrara permit and is located approximately 25 kilometres northeast of their Tendrara production concession.
Today the company’s share price has seen moderate recovery with the acquisition of Corporate Banking and Advisory firm Smith and Williamson. Following the acquisition, Sound Energy went on to appoint Cenkos Securities Plc (LON:CNKS) as their Nominated Adviser with immediate effect.
Sound Energy shares are currently trading up 8.08% or 0.94p at 12.59p per share 12/12/18 15:49 GMT. Analysts from RBC Capital Markets have reiterated their ‘Sector Perform’ stance on Sound Energy stock.