The agreement united the areas covered by the company’s Tendrara petroleum agreement in April 2013, the Matarka reconnaissance licence granted in July 2017, and the Anoual petroleum agreement, said the British company in statement published yesterday, August 31.
“I am delighted to announce that we have contractually secured our rights on this potentially transformational acreage up to 2026,” said James Parsons, Sound Energy CEO.
“We look forward to the approval of our production concession and commencement of our exploration drilling programme in the near future,” he added.
Sound Energy signs new 8 year petroleum agreement for Tendrara, Eastern Morocco.
— Sound Energy (@soundenergyplc) August 31, 2018
The National Office of Hydrocarbon and Mines (ONHYM), Morocco’s regulator for petroleum operations, signed the new agreement. It will come into effect after the approval of the Moroccan finance and energy ministries, according to the British company’s statement.
In July 2017, the British company signed two contracts with ONHYM, acquiring two new licenses for the two areas near Tendrara and the Algerian border: Anoual and Matarka.
In July 2018, Sound Energy said it discovered large oil deposits in Anoual after exploring in the area.
Brian Mitchener, exploration manager of Sound Energy, expressed his satisfaction with the discovery. “I am delighted to report receipt of the final basin model and the potential for a new oil play in the Paleozoic over the Anoual licence.”
In September 2017, the Advisory & Finance Group Investment Bank (AFG) gave Sound Energy a funding offer worth $60-100 million for its Tendrara gas export pipeline project.
AFG is a Moroccan oil and gas investment fund owned by Mohamed Benslimane, married to Princess Lalla Zineb. AFG acts as a manager for Sound Energy in the country.
The new petroleum agreement, named “Greater Tendrara Petroleum Agreement,” covers an area of approximately 14,500 square kilometers extending across eastern Morocco and “surrounding the development concession application area relating to the Tendrara gas discovery.”
Following the petroleum agreement’s implementation, Sound Energy will hold 47.5 percent of the Greater Tendrara licensed area. Schlumberger holds 27.5 percent and the remaining 25 percent will be held by ONHYM.
The new agreement will be divided into 3 phases: an initial 4-year phase to dig 2 exploration wells, an “optional first complementary” 2-year phase to dig one exploration well, and an “optional second complementary” 2-year phase to dig another exploration well. All exploration wells will comply with the minimum Triassic objective.