The oil and gas company Sound Energy has just announced a new milestone in its development plan in Morocco, marked by the revision of its syndicated convertible loan. The company has signed a new term loan agreement with Aleph Finance, for $6.5 million, replacing a previous convertible loan of $3.3 million. The new loan, which must be repaid by July 23, 2025, carries an interest rate of 20%, reflecting both the urgency of the company’s financial needs and its confidence in the return on investment of its projects in Morocco, according to a statement from the London Stock Exchange-listed company.
SDX plans to allocate $4.5 million to its projects in Morocco and other commitments. After repaying the previous $2 million loan, the remaining funds will primarily be directed toward the company’s capital expenditures in the country, according to the same source.
Since its establishment in Morocco, SDX Energy has made the Kingdom one of its main operational hubs, achieving several successes in gas exploration, particularly in the Gharb region. The company, which also recently announced the drilling of two new onshore wells targeting estimated gas volumes of 2.4 billion and 600 million cubic feet respectively, plans to acquire new seismic data in 2025 and is working with the government to connect an unlinked gas well.
These funds should enable the company to continue expanding its infrastructure and accelerate gas production to meet the country’s growing energy needs.
In exchange for this new financing, SDX Energy has agreed to provide Aleph Finance with significant guarantees, including a pledge on the shares of SDX Energy Morocco and Sea Dragon Energy, two strategic subsidiaries for the company. These guarantees reflect the value of the Moroccan assets within SDX’s overall portfolio, highlighting the company’s confidence in the potential of its local projects. Before finalizing this agreement, the company must obtain approval from its shareholders at the general meeting scheduled for October 14.
It is worth noting that Managem SA recently acquired Sound Energy’s Moroccan subsidiary, purchasing 100% of its share capital and voting rights. This transaction was approved by the Competition Council’s Permanent Commission, chaired by Ahmed Rahhou, during a meeting held on September 23, 2024. As reported by TelQuel, the total value of the transaction is approximately $12 million, or around 119 million dirhams, with an additional commitment of up to $24.5 million for Phase 2 of the project, subject to the fulfillment of certain conditions, including the necessary regulatory approvals.
Written in French by Younes Saoury, edited in English by Eric Nielson
