Sound Energy has been granted an option to acquire a 55 percent interest in the Meridja permit, onshore Morocco by Oil & Gas Investment Fund S.A.S (OGIF).
Meridja is adjacent to Sound Energy's existing Tendrara license and covers a 3,474 square mile area. OGIF currently holds a 75 percent interest in a reconnaissance permit over the Meridja area with the remaining 25 percent held by Morocco's Office National des Hydrocarbures des Mines.
As consideration for the option, Sound Energy will pay OGIF $100,000 and will conduct and fund early stage commitments under the reconnaissance permit up to a maximum of $200,000. On exercise of the option, Sound Energy would pay OGIF a further $150,000 and would carry OGIF and ONHYM for costs up to the end of a first Meridja exploration well. The reconnaissance permit, which was recently successfully extended by OGIF, has an expiry date of August 1, 2016.
James Parsons, Sound Energy's CEO commented in a company statement:
"Following our entry into Morocco last year, we have moved quickly to build our regional position further in a highly prospective area. The option secures exclusive access to a key permit adjacent to Sound Energy's existing Tendrara license and will enable us to increase our upside potential significantly should the first well at Tendrara be as successful as we hope. The transaction further demonstrates our strong partnership with OGIF and further consolidates our position as a leading onshore operator in Morocco."
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