Sound Energy losses narrow on lower exploration expense

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Morocco-focused oil company Sound Energy posted a narrower first-half loss owing to a drop in exploration costs.

Pre-tax losses for the six months through June amounted to £0.38m, compared to losses of £11.5m on-year.

During the reporting period, Sound Energy had signed a heads of terms with a 'leading Moroccan energy group' to construct a liquefied natural gas project.

Environmental impact assessment approvals for 120-kilometre, 20-inch pipeline and gas treatment plant were received in January and March, respectively.

Cash at 30 June was £4.2m.

'The first half of 2020 was an active and productive period for the company as it reset its strategy to transition towards becoming a cash generating company with significant exploration potential,' executive Graham Lyon said.