Shares in Sound Energy PLC surged on Thursday after it signed a ten-year sales contract with Afriquia Gaz S.A. for liquefied natural gas from its Tendrara project in Morocco.

The London-listed energy company said the deal is for a minimum of 100 million cubic meters of LNG per year, and the price will be linked to both the European TTF and the U.S. Henry Hub benchmark indices. Afriquia is a subsidiary of Moroccan conglomerate Akwa Group.

Shares at 0842 GMT were up 0.93 pence, or 65%, at 2.35 pence.

"This is a key milestone in moving forward towards the final investment decision and notice to proceed for the Tendrara Phase 1 Development," Executive Chairman Graham Lyon said.

In addition, the deal includes a 2 million pounds ($2.8 million) investment by Afriquia in Sound Energy through the issue of 159.7 million new shares at a price of 1.25 pence each.

Sound Energy also said that it is working towards improved terms in relation to the Afriquia loan note upon which the LNG sale and purchase agreement is conditional.