Sound Energy said it has been given a cash injection of €7.5million from Schlumberger for services on a forthcoming well.
The company said the agreement will be subject to a Master Services Agreement between the parties to cover the money spent during an 18 month period.
In exchange Schlumberger has agreed to grant Schlumberger an option during a six month period following the completion of a well test and the declaration of a potential commercial discovery, to acquire a 20% net profit interest in the Badile licence.
James Parsons, Sound Energy’s chief executive, said:”Following the early success at Tendrara, I am delighted to reveal the first of our funding solutions for Badile whereby Schlumberger gain access to a 20% profit interest in the licence in exchange for funding 30% of the estimated cost of the first well and 20% of all costs thereafter.
“The Schlumberger / Sound Energy partnership, which now spans multiple assets and multiple geographies, remains a critical differentiator for our Company which technically de-risks and funds our key asset.
“I look forward to the continued broadening of this partnership across existing and new assets.”
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