Sound Energy has signed an agreement to acquire PetroMaroc’s 50% working interest in three onshore gas permits known as the Sidi Moktar Licences, in Morocco.
On completion of the acquisition, the company will issue a 10% net profit interest to PetroMaroc in any future cash flows from the Kechoula discovery.
In addition, PetroMaroc will receive a 5% net profit interest from structures within the Sidi Moktar Licences other than the Kechoula discovery.
The three onshore licences cover 2,700km² in the Essaouira basin, central Morocco and comprise material existing gas discovery in the Lower Liassic (Kechoula).
At Kechoula, two wells have been drilled and a near term extended well test is planned before commercial production. Kechoula, which is located near existing infrastructure, is expected to have an unrisked mid case GOIP of 293Bscf.
The Sidi Moktar Licences are also estimated to have significant Triassic exploration potential.
Once the acquisition is completed, Sound Energy will hold 75% of the licences through its 100% owned UK-based Sound Energy Morocco South.
Sound Energy also signed an agreement for the sale of 66.67% of Sound Energy Morocco South to Culebra Petroleum.
Under the agreement, Culebra Petroleum will be entitled to 50% working interest in the Sidi Moktar Licences and will pay $6m to Sound Energy as consideration for the acquisition of 66.67% of Sound Energy Morocco South.
The company also proposes to invest up to $18m on the Sidi Moktar Licences.
Sound Energy Morocco South will remain as operator of the licences.
Sound Energy CEO James Parsons said: "The combination of these two transactions will position Sound Energy with an effective 25% working interest in Sidi Moktar with a carry to $18m (100%) from an aligned and well funded partner; and an additional $6m of cash, with which to continue Sound Energy’s counter cyclical growth strategy."
Image: Sound Energy has already drilled two wells at Kechoula. Photo: courtesy of Stuart Miles / FreeDigitalPhotos.net.
