21st Oct 2015 14:15
LONDON (Alliance News) - Cantor Fitzgerald believes the strategic relationship formed between Sound Energy and Schlumberger is a sign of the quality of Sound's assets and will allow the company to expand across Europe and Africa without having to return to the market for funds.
Sound signed a memorandum of understanding with Schlumberger and a term sheet with the latter's production management arm regarding the Tendrara licence in Morocco.
"We believe this relationship will jointly fund and technically de-risk multiple assets in Sound's portfolio and also future assets. It is a strong endorsement of the assets, Sound's management team, and the company's regional gas strategy," said Cantor analyst Emily Ashford.
"It positions Sound for ambitious expansion across Europe and Africa without equity dilution," she added.
Cantor retained its Buy rating and price target of 30.0 pence per share.
Sound shares were trading up 4.8% to 16.77p on Wednesday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
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