Sound Energy (LSE:SOU) has repaid all outstanding debt following the sale of its Tendrara interests and associated Eastern Morocco exploration licences to Managem for $57 million.
The company used the majority of the transaction proceeds to settle its debt obligations, reporting a cash balance of $9.8 million at the end of August 2026.
The disposal includes Sound Energy’s interests in the Tendrara, Anoual and Grand Tendrara permits, removing the company’s future funding commitments associated with these projects.
Chief executive Majid Shafiq said the elimination of debt had improved the group’s financial position compared with the beginning of 2026, allowing management to redirect its attention towards business development.
Following the transaction, Sound Energy is focusing on potential acquisitions and the development of its solar energy activities in Morocco.
The company intends to pursue opportunities that could expand its operations, diversify its asset portfolio and generate cash flow.
Sound Energy is also continuing efforts to secure a farm-out agreement for its Sidi Moktar licence in Morocco.
The UK-listed energy company focuses on gas developments and renewable energy projects, primarily in Morocco. Its activities have included mini-LNG developments and solar initiatives, alongside efforts to identify acquisition opportunities within the energy sector.
The completion of the Tendrara disposal leaves Sound Energy without outstanding debt and with $9.8 million in cash as it pursues its revised business strategy.
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