Sound Energy Signs HoA for Acquisition of PetroMaroc's Stake in Moroccan Gas Assets

Sound Energy has reached heads of agreement for acquisition of PetroMaroc's 50 percent operated interest in three onshore gas permits located in Morocco (together the Sidi Moktar licences).

These heads of agreement follow Sound Energy's announcement earlier announcement this month, in which the company informed about the acquisition of an initial 25 percent interest in the Sidi Moktar Licences from Maghreb Petroleum Exploration.

The Sidi Moktar Licences cover 2,700 sq kms in the Essaouira basin, central Morocco and contain a material existing gas discovery in the Lower Liassic (Kechoula). Two wells have already been drilled at Kechoula and a near term extended well test is awaited prior to expected commercial production, the company stated. 

Kechoula has been estimated to have an unrisked mid case GOIP of 293 Bscf. The Sidi Moktar licences are also estimated to have significant (in excess of 1 Tcf of unrisked GOIP) Triassic exploration potential.

Under the heads of agreement, subject to contract and regulatory and other approvals, Sound Energy will acquire PetroMaroc's 50 percent working interest in, and operatorship of, the Sidi Moktar licences. 

On completion of the acquisition, Sound Energy will issue PetroMaroc with new ordinary shares in the Company with a market value of £3,650,000 and will grant PetroMaroc: a 10percent net profit interest in any future cash flows from the Kechoula discovery as well as 5 percent net profit interest in any future cash flows from structures within the licences other than the Kechoula discovery.