Sound Energy, the Mediterranean focused upstream gas company, has agreed to acquire a further 50 percent operated interest in three onshore gas permits located in Morocco from PetroMaroc Corporation Plc.
On completion of the acquisition, Sound Energy will issue 21,258,008 new ordinary shares in the company to PetroMaroc and provide the company with a 10 percent net profit interest in any future cash flows from the Kechoula discovery and a 5 percent net profit interest in any future cash flows from structures within the Sidi Moktar Licences other than the Kechoula discovery. Following the acquisition Sound will hold 75 percent of the Sidi Moktar Licences through its 100 percent owned UK incorporated intermediate holding company, Sound Energy Morocco South Limited.
Sound also revealed that it had signed heads of terms with Culebra Petroleum Limited for the sale of 66.67 percent of Sound Energy Morocco South, which will effectively entitle Culebra Petroleum to 50 a percent working interest in the Sidi Moktar Licenses. Culebra is a privately owned oil and gas company. As consideration for the acquisition Culebra Petroleum will pay Sound $6 million in cash and commit to an investment program on the Sidi Moktar Licenses up to a value of $18 million.
Sound Energy’s Chief Executive James Parsons said in a company statement:
"The combination of these two transactions will position Sound Energy with an effective 25% working interest in Sidi Moktar with a carry to US$18 million (100%) from an aligned and well funded partner; and an additional US$6 million of cash, with which to continue Sound Energy's counter cyclical growth strategy."
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