Sound Energy plc to Acquire Meridja Area, Onshore Morocco
Sound Energy, the Mediterranean and European focused upstream gas company, announces that it has signed a binding agreement with Oil & Gas Investment Fund S.A.S ("OGIF") whereby OGIF has granted Sound Energy an option to acquire a 55% interest in the Meridja permit, onshore Morocco (the "Option").
Meridja is adjacent to Sound Energy's existing Tendrara licence and is a highly prospective 9,000 Km2 area with the same fundamental geology as Tendrara, where Sound Energy expects to drill its first well shortly. OGIF currently holds a 75% interest in a reconnaissance permit over the Meridja area (the "Reconnaissance Permit"), with the remaining 25% interest held by Morocco's Office National des Hydrocarbures des Mines ("ONHYM").
OGIF has granted the Option to Sound Energy, under which Sound Energy is able to acquire (subject to regulatory and other approvals) a 55% interest in and operatorship of the Meridja exploration permits, once awarded.
As consideration for the Option, Sound Energy will pay OGIF US$100,000 and will conduct and fund early stage commitments under the Reconnaissance Permit up to a maximum of US$200,000. On exercise of the Option Sound Energy would pay OGIF a further US$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 1 August 2016.
James Parsons, Sound Energy's Chief Executive Officer commented:
"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 licence 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."