Sound Energy Adds to Moroccan Acreage

Mediterranean-focused explorer Sound Energy has reached heads of agreement with PetroMaroc to buy its 50% operating interest in three permits in Sidi Moktar, Morocco, it said January 26.

The £3.65mn ($5.2mn) transaction, payable in shares, gives the UK company ownership of 75% of the permits, following its deal with Maghreb Petroleum announced earlier this month.

The licences cover 2,700 km² in the Essaouira basin, central Morocco, and contain a material existing gas discovery in Kechoula in the Lower Liassic.

Two wells have already been drilled at Kechoula, where commercial production could start following the testing of an extended well test.  Kechoula has mid-case unrisked gas in place of 293bn ft³. The Sidi Moktar licences have an estimated 1 trillion ft³ gas in place.

On completion Sound will issue PetroMaroc shares with a market value of £3.65mn and will grant PetroMaroc a 10% net profit interest in any future cash flows from the Kechoula discovery; and a 5% net profit interest in any future cash flows from structures within the Sidi Moktar Licences other than the Kechoula discovery.

Discussions with prospective farm in partners are progressing well, Sound said. CEO James Parsons said the deal gave Sound operatorship of “an already successfully drilled material gas discovery with potential near term production and significant deeper exploration potential.” 

William Powell