19 December 2016

Sound Energy plc

("Sound Energy" or the "Company")

Director/PDMR Shareholding and Block Admission

Sound Energy, the African and European focused upstream gas company, announces that it was notified on 16 December 2016 that Greenberry plc ("Greenberry") had, on that same day, purchased a further 225,613 ordinary shares of 1p each in the Company ("Ordinary Shares") at a price of 72.63 pence per Ordinary Share.

Marco Fumagalli, a director of the Company, is Managing Partner of, and a 25% shareholder in, Continental Investment Partners SA ("Continental"). Greenberry is an affiliate of Continental by virtue of its common ownership.

As a result of this purchase of Ordinary Shares, Continental and its affiliates are interested in a total of 66,717,162 Ordinary Shares, representing 10.04% of the Company's issued ordinary share capital.  

The notification included at the foot of this announcement, made in accordance with the requirements of the Market Abuse Regulation, provides further detail.

Block Admission

The Company also announces that, further to the block admissions first announced by the Company on 7 August 2015, applications have been made for the block admissions of up to a further 76,253,926 ordinary shares of 1p each in the Company (the "New Ordinary Shares") to trading on AIM (the "Block Admissions"). The New Ordinary Shares are expected to be issued from time to time pursuant to the exercise of warrants and options to subscribe for new ordinary shares of 1p each in the Company ("Ordinary Shares").

The New Ordinary Shares are expected to be admitted to trading on AIM on 22 December 2016 and will, when issued, rank pari passu with the Company's existing Ordinary Shares.

The Block Admissions have been made in respect of the issue of Ordinary Shares pursuant to the exercise of: (i) warrants issued by the Company in 2015 to subscribe for new Ordinary Shares at a price of 24.0p per new Ordinary Share (the "2015 Warrants"); (ii) warrants issued by the Company in 2016 to subscribe for new Ordinary Shares at a price of 30.0p per new Ordinary Share (the "2016 Warrants"); and (iii) share options issued by the Company to certain of the Company's employees to subscribe for new Ordinary Shares ("Share Options"), in the below amounts:

Block Admissions

Following admission, the Company will continue to have 664,582,246 Ordinary Shares in issue with no shares being held in treasury. This is the total number of voting rights in Sound Energy and may be used by shareholders as the denominator for the calculations by which they determine if they are required to notify their interest in, or change to their interest in, the Company under the Disclosure Rules and Transparency Rules.

As a result of the Block Admissions, the Company will have a total of 132,916,449 Ordinary Shares admitted to trading on AIM under block admissions in respect of Ordinary Shares which may be issued from time to time pursuant to the exercise of: (i) warrants issued by the Company in 2014 to subscribe for new Ordinary Shares at a price of 10.4p per new Ordinary Share (the "2014 Warrants"); (ii) the 2015 Warrants; (iii) the 2016 Warrants; and (iv) Share Options.

Total block admissions

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

"2016 has been a hugely exciting year for Sound Energy following the resounding success in Eastern Morocco.  It is becoming increasingly clear that Tendrara and the Eastern Morocco play have the potential to be a very material hydrocarbon province.  The fast approaching Tendrara outpost well (TE-8) is expected to unlock the first 1.5Tcf of what we anticipate to be, following further drilling and 2D seismic, a very material, multi Tcf connected gas field.  

It is also very encouraging to see our Cornerstone Investor purchasing further shares in the open market ahead of the drilling of TE-8 in Morocco and of the Badile exploration well in Italy.

Whilst no new shares have been issued today, we have also today taken the opportunity to secure a further block admission (an administrative mechanism to avoid individual applications for the admission of new ordinary shares associated with exercises of already announced warrants and options)."

NOTIFICATION AND PUBLIC DISCLOSURE OF TRANSACTIONS BY PERSONS DISCHARGING MANAGERIAL RESPONSIBILITIES AND PERSONS CLOSELY ASSOCIATED WITH THEM

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