27 July 2016

Sound Energy plc

("Sound Energy" or the "Company")

Badile: Schlumberger Investment

Sound Energy, the Mediterranean focused upstream gas company, is pleased to announce the signature of an agreement with Schlumberger group entities ("Schlumberger") whereby Schlumberger has agreed to fund Euro 7.5 million of services to be provided by Schlumberger on the forthcoming Badile well. The agreement is subject to standard conditions precedent and signature of a Master Services Agreement ("MSA") between the parties to cover the Euro 7.5 million spend during a period expiring 18 months from the date of signature of the MSA.

In exchange the Company has agreed to grant Schlumberger an option, exerciseable at nil additional cost at any point during a six month period following the completion of a well test and the declaration of a potential commercial discovery at the Badile licence, to acquire a 20% net profit interest in the Badile licence.

James Parsons, Sound Energy's Chief Executive Officer commented:

"Following the early success at Tendrara, I am delighted to reveal the first of our funding solutions for Badile whereby Schlumberger gain access to a 20% profit interest in the licence in exchange for funding 30% of the estimated cost of the first well and 20% of all costs thereafter.

The Schlumberger / Sound Energy partnership, which now spans multiple assets and multiple geographies, remains a critical differentiator for our Company which technically de-risks and funds our key asset.

I look forward to the continued broadening of this partnership across existing and new assets."

This announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

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