African and European focused upstream gas company, Sound Energy, has signed a non-binding heads of agreement for the acquisition of all of Oil & Gas Investment Fund's (OGIF's) assets in Eastern Morocco.
As part of the deal, Sound plans to acquire a further 20 percent interest in Tendrara, a 75 percent interest in Meridja and an application for a 75 percent position in the relinquished area close to Tendrara. The consideration for the acquisition will be 272 million new ordinary shares in the company, subject to shareholder approval.
OGIF is a Moroccan fund, owned by six large Moroccan financial institutions: Attijariwafa Bank Group (the largest Moroccan bank), CIMR and CDG Group (the largest Moroccan Pension Funds), Finance Com (Investment Company), Mamda-Mcma and Saham (Insurance Companies).
"Morocco is a fast growing and low risk emerging country with significant hydrocarbon potential,” Mohammed Benslimane, CEO of OGIF's management company, said.
“This new partnership aligns the interests of OGIF and Morocco's largest financial institutions with those of Sound Energy. We see huge short term upside potential in the equity of Sound Energy and look forward to what will certainly be a successful future together,” he added.
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