While the pre-sale contract is binding on its terms, the sale of Area 1 is subject, among other things, to the registration of another contract for the sale of final land in Zone 1 before 10 October 2020 and the sale of Surface 2 depends, among other things, on obtaining an Italian ministerial certification for the satisfactory conclusion of restoration operations (with a long deadline until 31 December 2023) and the conclusion a new final sales contract. On April 8, 2018, the company completed the sale of its former Italian portfolio (“Entsorgung”) through the sale of Sound Energy Holdings Italy Limited (“SEHIL”) to Coro Energy PLC (“Coro”). Apennine is a wholly-paid subsidiary of Coro. As part of the waste disposal, Coro agreed to proceed with the rehabilitation and subsequent sale of the Badile-Landes and to return to the company the net proceeds from the sale of Badile Land once completed. In accordance with the waste disposal, the company had agreed to pay the cost of cleaning badile Land (870,000 euros) in Coro. To date, the company has paid 237,000 euros in management and preparation costs related to planned restoration operations. As part of the pre-sale contract, the sale of the badile land will take place in two separate phases, with a first sale of “surface 1”, for which there is no need for remediation work, in exchange for a consideration of 300,000 EUROS, followed by a sale of “surface 2”, which must still be considered complete of the need for implementation and certification. , against a consideration of EUR 350,000. Remediation work in Area 2 has not yet been completed. The completion of the sale of Surface 1 does not depend on the completion of the sale of Surface 2. Apennin has now entered into a mandatory pre-sale contract with a buyer on the badile land sale project, under which the buyer has committed, in addition to the purchase of the Badile land, to cover the remaining costs of the badile-Landes rehabilitation related to the historic drilling activity on the site. Restoration work will continue to be carried out by Apennin, but the cost of these activities will now be charged directly to the buyer and not to the company, in accordance with the terms of the pre-sale contract.

“Confirmation that, under the pre-sale contract, Sound Energy will not be subject to the current turnaround obligations in Italy and that Sound should benefit from badile Land`s terms of sale between Appenine and the buyer, will allow our small team to focus entirely on the company`s strategy of transforming the business into a cash-generating business with considerable exploration potential.” Once the sales of Zone 1 and Zone 2 have been successfully concluded, the company expects a net net amount of 600,000 euros, less administrative and legal costs. The email address cannot be subscribed. Please, do it again. Learn more about FindLaw`s newsletter, including our terms of use and privacy policies.