31st Aug 2018 09:36
LONDON (Alliance News) - Sound Energy PLC said Friday it has signed a new eight-year petroleum agreement for the Tendrara and Matarka areas in Morocco.
The new agreement covers 14,500 square kilometres in the east of the country.
Sound will have a 48% stake, and be the operator, with 28% held by Schlumberger and the rest by the country's state regulator L'Office National des Hydrocarbures et des Mines.
In the first four year period, Sound expects to drill two exploration wells into a Triassic formation - likely to be the TE-9 and TE-10 wells.
There will be a further option on another well in the two years after, and then the same again for another two years after that.
Chief Executive James Parsons said: "I am delighted to announce we have contractually secured our rights on this potentially transformational acreage up to 2026.
"We look forward to the approval of our production concession and commencement of our exploration drilling programme in the near future."
Shares were 1.5% higher on Friday at a price of 41.84 pence each.
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