Sound Energy on Thursday, announced that it has signed a binding agreement to buy Maghreb Petroleum Exploration’s 25% working interest in the Sidi Moktar Licences in Morocco.

This is coming after the Company's announcement on October 22, 2015, that it had entered into heads of terms to acquire Maghreb Petroleum Exploration’s interest in the Sidi Moktar Licences.

The Licences cover an area of 2,700km² in the Essaouira basin and comprise of an existing gas find in Kechoula. The Sidi Moktar Licences are estimated to have more than 1tcf of unrisked gas originally in place and a substantial Triassic exploration potential.

As a matter of fact, the 25% working interest is of benefit to Sound Energy in the sense that, it can be carried till the company discover first gas on the Licences and afterwards, fund its proportion of expenses.

However, after the completion of the acquisition, Sound Energy will issue 21,764,706 new ordinary shares in the Company to Maghreb as well as award it a 1.6% net profit interest in any future revenue from the Kechoula discovery.

“Sidi Moktar is the second material asset in our onshore Moroccan portfolio and secures a 25% interest in an already successfully drilled gas discovery with potential near-term production, significant deeper exploration potential and in which we are carried to first gas. It is also a pleasure to welcome Leonardo Salvadori and Mary Hood, both of whom add further depth to the team as we continue to grow our business counter-cyclically”, James Parsons, CEO of Sound Energy told Energy-pedia.

Anita Fatunji