Sidi Moktar: Ministry Approval & Farm Out Process

RNS Number : 2622Q

Sound Energy PLC

05 June 2018

 

5 June 2018

Sound Energy plc

("Sound Energy" or the "Company")

Sidi Moktar : Receipt of Ministerial Approval and Initiation of Farm Out Process

Sound Energy, the Moroccan focused upstream gas company, is pleased to announce receipt of Ministerial approval of the Sidi Moktar Onshore Petroleum Agreement awarded to the Company in February 2018 and that, following completion of further subsurface evaluation and significant inbound third party interest, the Company has now initiated a formal farm out process for its Sidi Moktar Onshore licence, Central Morocco. 

The Sidi Moktar Onshore Petroleum Agreement, where the Company has a 75% operated position, covers some 4,499 square kilometres. The remaining 25% position in Sidi Moktar is held by Morocco's Office National des Hydrocarbures et des Mines ("ONHYM").

On 30 November 2017 the Company announced its initial volume estimates of the exploration potential of Sidi Moktar, following an independent preliminary technical evaluation (the "Sidi Moktar Study"). The Sidi Moktar Study mapped a portfolio of 28 Liassic, Triassic and Paleozoic leads in a variety of hydrocarbon trap types across the Sidi Moktar Onshore permit areas and highlighted an exploration potential best case of 8.9 Tcf with a high of 11.2 Tcf and a low case of 6.7 Tcf, unrisked gas originally in place (gross). In addition, Sidi Moktar contains an existing gas discovery in the Lower Liassic (Kechoula) and is located close to existing infrastructure and gas demand, including the large-scale Moroccan state owned OCP Phosphate plant. 

During 2018, the Company has completed a subsurface evaluation of the Western area of the Sidi Moktar Onshore licence area and is close to finalising the mapped portfolio and comprehensive Petroleum System Model over the entire area.

Following receipt of the Ministerial Approval, completion of the above technical work and recent significant inbound third party interest, the Company has initiated a formal farm out process with the objective of funding the forward 2018 work programme at Sidi Moktar, whilst retaining operatorship.

Further announcements will be made, as appropriate, in due course although the Company cautions that there can be no certainty that any farm out of the Sidi Moktar Onshore licence will be concluded.

This announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

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 - Joint Broker Matthew Coakes Martin Copeland Laura White	Tel: [phone]
Macquarie Capital (Europe) Limited - Joint Broker Alex Reynolds Nick Stamp		Tel: [phone]

The information contained in this announcement has been reviewed by Sound Energy's Exploration Director, Brian Mitchener, a chartered petroleum geologist. Tcf means trillion cubic feet of gas.

 

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