Mediterranean-focused upstream gas company, Sound Energy, has reached an agreement with PetroMaroc Corporation Plc to acquire 50 percent of PetroMaroc’s operated interest in three onshore gas permits located in Morocco.
On completion of the acquisition, Sound Energy will issue PetroMaroc with new ordinary shares in the company with a market value of £3.65 million ($5.18 million). Sound will also grant PetroMaroc a 10 percent net profit interest in any future cash flows from the Kechoula discovery, as well as a 5 percent net profit interest in any future cash flows from structures within the Sidi Moktar Licenses other than the Kechoula discovery.
This agreement follows Sound Energy's acquisition of an initial 25 percent interest in the three onshore gas Sidi Moktar Licenses from Maghreb Petroleum Exploration S.A. The Sidi Moktar Licenses cover 1,042 square miles in the Essaouira basin, which is located in central Morocco.
James Parsons, Sound Energy’s chief executive, commented in a company statement:
"This transaction will result in Sound Energy holding an aggregate 75 percent interest in, and operatorship of, an already successfully drilled material gas discovery with potential near term production and significant deeper exploration potential.
“Operator status at Sidi Moktar unlocks this asset whilst also granting Sound control over the pace and scale of operations.
“Sound Energy can now proceed to dovetail operations at Sidi Moktar with those planned at Tendrara - with the potential for material production from Sidi Moktar during 2016."
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