Sound Energy Acquires Stake in Moroccan Gas Licences

Sound Energy has entered into an agreement to acquire stake in three onshore gas permits located in Morocco.

The company has entered into a binding agreement with Maghreb Petroleum Exploration (MPE) for the purchase of MPE's 25 percent working interest in three onshore gas permits, together called the Sidi Moktar licences, located in Morocco. 

The acquisition follows the announcement of 22 October 2015, in which the company announced that it had entered into heads of terms with MPE.

The Sidi Moktar licences cover 2,700 square kilometres in the Essaouira basin, central Morocco and contain a material existing gas discovery in the Lower Liassic (Kechoula). Two wells have already been drilled at Kechoula and a near term extended well test is awaited prior to expected commercial production, Sound Energy said in a statement published Thursday. 

Kechoula is close to existing infrastructure and has been estimated to have an unrisked mid case GOIP of 293 Bscf. The Sidi Moktar licences are also estimated to have significant (in excess of 1 Tcf of unrisked GOIP) Triassic exploration potential.

The 25 percent working interest being acquired by Sound Energy has the benefit of being carried until first gas on the licences (thereafter the company will be required to fund its pro rata proportion of costs).

In consideration for the acquisition, Sound Energy will, on completion of the acquisition, issue MPE with 21,764,706 new ordinary shares in the company and grant MPE a 1.6 percent net profit interest in any future cash flows from the Kechoula discovery.