African and European upstream gas company Sound Energy has signed a binding heads of terms agreement with global oilfield services company Schlumberger.
The binding heads of terms will extend the existing field management agreement (FMA) between Sound Energy and Schlumberger Oilfield Holdings affiliate by including Meridja and the Tendrara relinquished areas onshore Morocco.
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Sound Energy is currently in the process of acquiring interests in the Moroccan assets from the Oil and Gas Investment Fund.
Under the FMA extension, Schlumberger will be granted a 27.5% working interest in the Meridja area and the Tendrara Relinquished Area(s) respectively.
In exchange, Schlumberger has agreed to provide services to cover the agreed scope of Sound Energy's forthcoming Eastern Moroccan geophysical survey programme, estimated at $27.2m.
Schlumberger will also cover its pro-rata share of costs thereafter.
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By GlobalDataThe Eastern Moroccan geophysical programme includes the acquisition and processing of approximately 2,600km of new 2D seismic and 24,000km² of Gravity Gradiometry.
The seismic acquisition programme will cover the TAGI and Paleozoic across the Tendrara and Meridja areas.
The programme is scheduled to complete in stages over a one-year period, with each stage outputting an updated prospect inventory that will undergo review by an independent competent person.
Sound Energy chief executive James Parsons said: "We are delighted to introduce Schlumberger into Meridja and the relinquished area(s) whilst also securing a full carry on the forthcoming seismic programme.
“The extension of the Field Management Agreement will further deepen our strategic relationship with Schlumberger, who share the company's view of our Eastern Morocco potential and frees up cash to allow us to accelerate our exploration of the region."
In December 2015, Sound entered an FMA with Schlumberger to fund a significant portion of the capital expenditure on the first three Tendrara appraisal wells.
