10th Mar 2016 11:12
LONDON (Alliance News) - Sound Energy PLC said Thursday it has signed a binding agreement to buy a further 50% interest in three onshore gas permits in Morocco from PetroMaroc Corp PLC, together called the Sidi Moktar licences.
Additionally, it has signed heads of agreement for a farm out of Sidi Moktar to Culebra Petroleum Ltd, through the partial sale of an intermediate subsidiary of Sound Energy.
Sound Energy will issue 21.3 million shares to PetroMaroc as consideration for the 50% working interest in Sidi Moktar, as well as a 10% net profit interest in any future cash flows from existing gas discovery Kechoula, and a 5% net profit interest in future cash flows from any other structures within the licences.
Following the acquisition Sound Energy will hold a total interest in the licences of 75%.
It has signed heads of terms with Culebra for the sale of 66.67% of Sound Energy Morocco South, which will effectively entitle Culebra with a 50% working interest in the Sidi Moktar licences.
As consideration for Sound Energy Morocco South, Culebra will pay USD6 million in cash, commit to invest up to USD18 million in the Sidi Moktar licences, and assume 90% of the net profit interests granted to PetroMaroc as part of Sound Energy's acquisition of the licences.
Sound Energy Morocco South will remain as the operator of the licences.
Shares in Sound Energy were up 0.6% at 17.10 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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