Sound Energy has signed heads of terms with Maghreb Petroleum Exploration (MPE) for buying latter’s 25 per cent carried working interests in three onshore permits located in Sidi Moktar, Morocco
The permits cover 2,700 sq km in the Essaouira Basin and contain a material existing gas discovery in the Lower Liassic (Kechoula) where two wells have already been drilled and a near term well test is awaited prior to possible commercial production. Initial estimates by MPE have confirmed Kechoula to have an unrisked mid case gas originally in-place (GOIP) of 8.3bn standard cu/m. There is also significant (in excess of 28.3bn cu/m of unrisked GOIP) Triassic exploration potential.
Under the heads of terms MPE has agreed, to grant Sound Energy an option to purchase MPE’s 25 per cent carried working interest in the Sidi Moktar Licences for a price of US$1.13 at any time up to first commercial gas from a Sidi Moktar Licence. On grant of the option, the Sound Energy will issue MPE with new ordinary shares in the company with a market value of US$5.5mn.
Sound Energy will now finalise due diligence and work with MPE in the preparation and negotiation of contracts for execution.
CEO James Parsons said, “The option will, when granted, enable Sound Energy to secure a 25 per cent carried interest in an already successfully drilled gas discovery with potential near term production and significant deeper exploration potential. An interest in Sidi Moktar would also represent the second material asset in Sound Energy’s onshore Moroccan gas portfolio, which is underpinned by strong European gas fundamentals.”
