Sound Oil to Initiate Work on Moroccan Gas Asset in February

Sound Oil has signed a Letter of Intent (LoI) with Entrepose Drilling Morocco for the supply of a HH300 rig for the first two wells on the Tendrara licence onshore Morocco.

The LoI follows Sound Oil’s Field Management Agreement (FMA) with Schlumberger signed last month. As per the FMA, Schlumberger will provide integrated technical services, equipment and personnel to Sound Energy, operator of the Tendrara licence. Schlumberger will also fund a significant proportion of the capital expenditure on the first three Tendrara appraisal wells, and of the development of the licence area thereafter.

Schlumberger will be granted an upside linked to production performance, Sound Oil stated, adding that oil services giant will fund 80 percent of the investment in the first well and 75 percent of the second and third.

Ground works are expected to be initiated at Tendrara next month.

Last year, Sound Oil entered into a farm in agreement with the Moroccan Oil and Gas Investment Fund (OGIF) in relation to the Tendrara licence. The licence area covers eight blocks across a total of 14,500 sq kms in the north east of Morocco.  Seven wells have been drilled on the Tendrara licence to date, of which five discovered gas and two were tested successfully.