Sound Energy on Monday announced that it has entered into a binding agreement with Oil & Gas Investment Fund (OGIF).

Under the agreement, OGIF will allow Sound Energy secure a 55% interest and operatorship in the Meridja permit, onshore Morocco. The interest is however subject to regulatory and other necessary approval.

OGIF presently holds a 75% interest in a Reconnaissance permit over the Meridja area, while Morocco's Office National des Hydrocarbures des Mines (ONHYM) holds the remaining 25% interest.

The company, is to receive $100,000 from Sound Energy on contemplation for the Option. The latter will also carry out and fund first stage obligations under the Reconnaissance Permit (which has an expiry date of 1 August 2016) up to $200,000.

Meanwhile, upon the approval of the option, Sound Energy will pay OGIF an additional $150,000 as well as carry OGIF and ONHYM’s expenses up to the conclusion of the first Meridja exploration well.

According to Energy-pedia, the Meridja Permit is close to Sound Energy's Tendrara licence. It is an extremely prospective 9,000 Km² area with very similar fundamental geology as the Tendrara, where Sound Energy plans to drill its first well soon.

Anita Fatunji