Sound Energy on Tuesday announced that it has entered into heads of agreement to take a 75% interest in the Sidi Moktar licences, onshore Morocco.

The company under the heads of agreement will purchase PetroMaroc’s 50% operated interest on the licence following the acquisition of a 25% interest from Maghreb Petroleum at the beginning of this month.

The Licences cover 2,700 km² in the Essaouira basin, central Morocco and contain a material existing gas discovery in the Lower Liassic formation known as Kechoula. Two wells have been drilled at Kechoula to be followed by an extended well test before the commencement of commercial production. 

When completed, Sound Energy will issue shares worth £3. 65 million to PetroMaroc. The latter is to also keep a 10% net profit interest in any forthcoming revenues from the Kechoula discovery as well as 5% net profit interest in any future revenues from other discoveries at Sidi Moktar.

“This transaction will result in Sound Energy holding an aggregate 75% interest in, and operatorship of, an already successfully drilled material gas discovery with potential near-term production and significant deeper exploration potential. Operator status at Sidi Moktar unlocks this asset whilst also granting Sound control over the pace and scale of operations. Sound Energy can now proceed to dovetail operations at Sidi Moktar with those planned at Tendrara - with the potential for material production from Sidi Moktar during 2016”, James Parsons, the Sound Energy's Chief Executive, told Proactive Investors.

He added that talks with prospective farm-in partners are ongoing and progressing well.

Anita Fatunji