Sound Energy Announces Completion of Acquisition of Eastern Moroccan Permits

Sound Energy, the UK-based and Morocco-focused oil and natural gas exploration company, has announced the acquisition of the Schlumberger Silk Route Services Limited (SSRS), solidifying Sound Energy’s place in the Moroccan market.

Dubai – Sound Energy, the UK-based and Morocco-focused oil and natural gas exploration company, has announced the acquisition of the Schlumberger Silk Route Services Limited (SSRS), solidifying Sound Energy’s place in the Moroccan market.

SSRS, up until today owned by Schlumberger Holdings II Limited, has a 27.5% participating interest in the Anoual and Greater Tendrara exploration permits, and a 27.5% indirect interest in the Tendrara Concession – all in eastern Morocco. Following the acquisition, Sound Energy now holds a 75%-operated working interest in the permits and the concession, reads a statement from the company.

The acquisition is a result of a deal made earlier this year, when Sound Energy announced the purchase of the Eastern Moroccan exploration permits for $1 (MAD 8.93). As part of the agreement, the UK-based company will pay Schlumberger Holdings between 8% and 11% of its net profits from the permits for up to 12 years from the start of the operations.

“This accretive transaction has now completed and underlines Sound Energy’s position as the leading gas developer in Morocco,” Sound Energy’s Executive Chairman, Graham Lyon, said in the statement.

Following the recently signed 10-year sales agreement with Afriquia Gaz, the UK-based company is making way towards securing the “Final Investment Decision” for the company’s micro Liquid Natural Gas (LNG) project, Lyon added.

The agreement stipulates that over the next 10 years Sound Energy will deliver the Moroccan Afriquia Gaz anywhere between 475 and 564 cubic meters of LNG per day.

For their part, Afriquia Gaz will be bound by the “Take or Pay” clause. This means that the company is obligated to purchase an annual minimum of at least 475 cubic meters of the gas per day, which translates into around 100 million cubic meters per year.

The same agreement also stipulates several conditions for both parties, such a the finalization of a $18 million secured loan from Afriquia, with an annual coupon of 6% over a 12-year term.