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Heads of Terms: Further Sidi Moktar Acquisition
Heads of Terms: Further Sidi Moktar Acquisition.
About this update from Sound Energy Plc
[{"type":"text","content":"\n \nRNS Number : 9461M Sound Energy PLC 26 January 2016 \n\n26 January 2016\n \nSound Energy plc\n(\"Sound Energy\" or the \"Company\")\n \nAcquisition of Further Sidi Moktar Interest: Heads of Terms\nSound Energy, the Mediterranean focused upstream gas company, is pleased to announce that it has reached heads of agreement with PetroMaroc Corporation Plc (\"PetroMaroc\") in respect of Sound Energy's acquisition of PetroMaroc's 50% operated interest in three onshore gas permits located in Morocco (together the \"Sidi Moktar Licences\"). \nThese heads of agreement follow Sound Energy's announcement of 14 January 2016, in which the Company announced the acquisition of an initial 25% interest in the Sidi Moktar Licences from Maghreb Petroleum Exploration S.A. \nThe Sidi Moktar Licences cover 2,700 square kilometres in the Essaouira basin, central Morocco and contain a material existing gas discovery in the Lower Liassic (\"Kechoula\"). Two wells have already been drilled at Kechoula and a near term extended well test is awaited prior to expected commercial production. Kechoula is close to existing infrastructure and has been estimated to have an unrisked mid case GOIP of 293 Bscf (100% working interest). The Sidi Moktar Licences are also estimated to have significant (in excess of 1 Tcf of unrisked GOIP; 100%) Triassic exploration potential. \nUnder the heads of agreement, subject to contract and regulatory and other approvals, Sound Energy will acquire PetroMaroc's 50% working interest in, and operatorship of, the Sidi Moktar Licences (the \"Acquisition\"). On completion of the Acquisition, Sound Energy will issue PetroMaroc with new ordinary shares in the Company with a market value of £3,650,000 and will grant PetroMaroc: (i) a 10% net profit interest in any future cash flows from the Kechoula discovery; and (ii) a 5% net profit interest in any future cash flows from structures within the Sidi Moktar Licences other than the Kechoula discovery. \nThe Company also announces that, with support from PetroMaroc, discussions with prospective farm in partners are progressing well. \n \nJames Parsons, the Company's Chief Executive, commented:\n\"This transaction will result in Sound Energy holding an aggregate 75% interest in, and operatorship of, an already successfully drilled material gas d...