Mediterranean oil exploration and production (E&P) play Sound Energy (SOU:AIM) gains 9.3% to 22.12p as it moves towards a deal to add key infrastructure for its Tendrara field onshore Morocco.
The company has a non-binding expression of interest from its partner Oil & Gas Investment Fund on building a pipeline at an estimated cost of $50 million which would allow Tendrara to tap into a key pipeline linking North Africa with Europe.
Sound is set to commence drilling its second well on Tendrara alongside oil services giant Schlumberger (SLB:NYSE) in the near-term after announcing promising results from its first well in June (20 Jun).
Cantor Fitzgerald reiterates its ‘buy’ recommendation and 40p price target and comments: ‘Our valuation illustrates that Sound's shares trade at a significant discount to risked NAV. With a number of further share price catalysts expected in the near term, we see the company's share price as representing a compelling entry point for investors.’