Business
Sidi Moktar: Further Acquisition and Farm Out
Sidi Moktar: Further Acquisition and Farm Out.
About this update from Sound Energy Plc
[{"type":"text","content":"\n \nRNS Number : 6197R Sound Energy PLC 10 March 2016 \n\n10 March 2016\n \nSound Energy plc\n(\"Sound Energy\" or the \"Company\")\n \nSidi Moktar: Further Acquisition and Farm Out\nSound Energy, the Mediterranean focused upstream gas company, is pleased to announce:\n(i) the signature of a binding agreement for the acquisition of a further 50% operated interest in three onshore gas permits located in Morocco (together the \"Sidi Moktar Licences\") from PetroMaroc Corporation Plc (\"PetroMaroc\"); and\n(ii) the signature of Heads of Agreement for a farm out of Sidi Moktar to Culebra Petroleum Ltd (\"Culebra Petroleum\") via a partial sale of an intermediate subsidiary of Sound Energy. \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 mid case GOIP; 100%) Triassic exploration potential. \nSidi Moktar Acquisition: Signature of binding agreement with PetroMaroc\nFurther to the Heads of Terms announced by the Company on 26 January 2016, the Company has now signed a binding agreement to acquire, subject to regulatory approvals, PetroMaroc's 50% working interest in, and operatorship of, the Sidi Moktar Licences (the \"Acquisition\"). On completion of the Acquisition, Sound Energy will issue 21,258,008 new ordinary shares in the Company to PetroMaroc as consideration and will also issue 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. These terms are identical to those announced on 26 January 2016. \nFollowing the Acquisition the Company will hold 75% of the Sidi Moktar Licences through its 100% owned UK incorporated intermediate holdin...