3 September 2020
Sound Energy plc
("Sound Energy" or the "Company")
Notification From Moroccan Tax Authorities
Sound Energy, the Moroccan focused upstream gas company, announces that it has received a written notification by the Moroccan General Tax Administration (the "Moroccan Tax Administration") of a re-assessment in respect of Moroccan taxes (the "Notification") pursuant to a tax audit undertaken on Sound Energy Morocco East Limited, the Company's wholly owned subsidiary, by the Moroccan Tax Administration during 2020 and related to the fiscal period 2016 to 2018.
In the Notification, the Moroccan Tax Administration has assessed additional corporate and value-added tax liabilities totaling approximately US$14 million pursuant to historical licensing changes. According to their assessment, the historical licensing changes detailed in the Notification relate the Tendrara Lakbir Permit and the transfer of interest from Sound Energy Morocco SARL AU to Sound Energy Morocco East Limited. The Company believes that the assessment arises from a misunderstanding of the historical licensing changes and together with its advisors will be engaging with the Moroccan Tax Administration to provide clarity and to seek to resolve the misunderstanding.
The Company has 30 days from the receipt of the Notification to formally respond to the Notification and whilst the Company will be engaging constructively with the Moroccan Tax Administration in order to resolve the perceived misunderstanding, it will formally write to the Moroccan Tax Administration to formally refute the assessment and the basis thereof.
A further announcement will be made, as appropriate, in due course.
For further information please contact:
Vigo Communications - PR Adviser
Tel: 44 (0)20 7390 0230
Graham Lyon, Executive Chairman
Cenkos Securities - Nominated Adviser
Tel: 44 (0)20 7397 8900
Turner Pope Investments (TPI) Ltd - Broker
Tel: (0)20 3657 0050
The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.