Eastern Morocco: New Petroleum Agreement

RNS Number : 3277Z

Sound Energy PLC

31 August 2018

 

31 August 2018

Sound Energy plc

("Sound Energy" or the "Company")

Eastern Morocco : New Petroleum Agreement

Sound Energy, the Moroccan focused upstream gas company, is pleased to announce the signing of a new 8 year petroleum agreement uniting the areas previously covered by the Tendrara petroleum agreement and the Matarka reconnaissance licence ("Greater Tendrara") in addition to the existing Anoual petroleum agreement and the production concession application relating to the Tendrara gas discovery in Eastern Morocco.

James Parsons, Sound Energy's CEO, commented:

"I am delighted to announce that we have contractually secured our rights on this potentially transformational acreage up to 2026. 

We look forward to the approval of our production concession and commencement of our exploration drilling programme in the near future."

Greater Tendrara Petroleum Agreement

Further to the Company's announcement on 23 July 2018, the Company and its partners, including Schlumberger, have signed a petroleum agreement covering the Tendrara and Matarka areas (the "Greater Tendrara Petroleum Agreement"). The Greater Tendrara Petroleum Agreement, details of which are provided below, has been signed by L'Office National des Hydrocarbures et des Mines ("ONHYM"), the Moroccan State regulator for petroleum operations and it will come into force on approval of the Moroccan Energy and Finance Ministries.

The new Greater Tendrara Petroleum Agreement covers an area of approximately 14,500km2 extending across eastern Morocco and surrounding the development concession application area relating to the Tendrara gas discovery. The new Greater Tendrara Petroleum Agreement will unite the areas covered by the Tendrara petroleum agreement granted in April 2013 and the Matarka reconnaissance licence granted in July 2017.

Upon the Greater Tendrara Petroleum Agreement becoming effective, the Company will hold an operated 47.5% position. The remaining 52.5% will be respectively held by Schlumberger (27.5%) and ONHYM (25%).

The Greater Tendrara Petroleum Agreement will have a duration of 8 years from award and will be divided into 3 phases, with each phase having pre-agreed work commitments. The work commitments under the Greater Tendrara Petroleum Agreement will be:

·     Initial period of 4 years: 2 exploration wells with the minimum Triassic objective.  It is expected that the approaching TE-9 and TE-10 wells will fulfil this commitment.

·     Optional first complementary period of 2 years: 1 exploration well with the minimum Triassic objective.

·     Optional second complementary period of 2 years: 1 exploration well with the minimum Triassic objective.

Further announcements will be made, as appropriate, in due course.

For further information please contact:

Vigo Communications - PR Adviser Patrick d'Ancona Chris McMahon  Kate Rogucheva	Tel: [phone]
Sound Energy James Parsons, Chief Executive Officer	[e-mail]
Smith & Williamson - Nominated Adviser Azhic Basirov David Jones Ben Jeynes	Tel: [phone]
RBC Capital Markets - Joint Broker Matthew Coakes Martin Copeland	Tel: [phone]
Macquarie Capital (Europe) Limited - Joint Broker Alex Reynolds Nick Stamp	Tel: [phone]

The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

 

END

 

 

AGRBRGDILGXBGIG