Business
Tendrara: Schlumberger Field Management Agreement
Tendrara: Schlumberger Field Management Agreement.
About this update from Sound Energy Plc
[{"type":"text","content":"\n \nRNS Number : 2075K Sound Energy PLC 29 December 2015 \n\n29 December 2015\n \nSound Energy plc\n(\"Sound Energy\" or the \"Company\")\n \nTendrara: Schlumberger Field Management Agreement\n \nSound Energy, the European / Mediterranean focused upstream oil and gas company is pleased to announce, further to the memorandum of understanding and term sheet previously signed with Schlumberger, that it has entered into a Field Management Agreement with an affiliate of Schlumberger Oilfield Holdings Limited (the \"FMA\") in relation the Tendrara licence, onshore Morocco (the \"Tendrara Licence\").\n \nUnder the FMA:\n \n· Schlumberger will provide integrated technical services, equipment and personnel to Sound Energy, Operator of the Tendrara Licence; \n \n· Schlumberger will fund a significant proportion of the capital expenditure on the first three Tendrara appraisal wells, and of the development of the licence area thereafter; and\n \n· Schlumberger will be granted an upside linked to production performance. \n \nField Management Agreement\n \nSchlumberger Funding\n \nAs announced by the Company on 8 June 2015 as part of its entry into Morocco and Farm-in with the Moroccan Oil and Gas Investment Fund (the \"Farm In\"), the Company is required, in accordance with the terms of the Farm In, to fund 100% of the costs of the first three appraisal wells on the Tendrara Licence. Under the FMA, Schlumberger has now agreed to fund the following proportions of the first three Tendrara appraisal wells: \n \n· 80% of the capital expenditure of the first Tendrara appraisal well;\n \n· 75% of the capital expenditure of the second Tendrara appraisal well; and \n \n· 75% of the capital expenditure of the third Tendrara appraisal well.\n \nSound Energy will continue to be required to fund the remaining costs on the first three appraisal wells under the Farm In.\n \nThereafter or, if earlier, on commerciality of the Tendrara Licence having been declared, Sound Energy and Schlumberger shall fund the Company's costs under the Farm In in equal shares - with each party funding 50% of the Company's participating interes...