Sound Energy today confirmed it signed a heads of agreement to acquire all of Oil & Gas Investment Fund’s (OGIF) assets in Eastern Morocco.
OGIF is a Moroccan fund, owned by six large Moroccan financial institutions, including Attijariwafa Bank Group, CIMR and CDG Group, Finance Com Mamda-Mcma and Saham.
OGIF’s Eastern Moroccan assets consist of a 20% interest in Tendrara, a 75% interest in Meridja and an application for a 75% position in the relinquished area close to Tendrara.
Sound Energy will swap 272 million ordinary shares in the company for the assets.
Sound Energy chief executive James Parsons said:”This transaction positions Sound Energy with a hugely attractive, material and consolidated portfolio across Eastern Morocco, significant additional upside prior to the drilling of TE-8, our first step-out well at Tendrara, which is due to spud next month and a second supportive cornerstone investor group made up of Morocco’s largest institutions which secures us a hugely advantaged position in Morocco.
“We are pleased to have entered into heads of agreement with OGIF following the successful extended well test and I look forward to welcoming them to our shareholder register. I have worked closely with the OGIF team for over 18 months now and their access to Moroccan debt capital and their relationship and influence in country are second to none.
Mohammed Benslimane, chief executive of OGIF’s management company, added:”Morocco is a fast growing and low risk emerging country with significant hydrocarbon potential. Sound Energy has already played a critical role in unlocking the Eastern Moroccan gas promise over the last eighteen months and we remain hugely impressed by James and his team.
“This new partnership aligns the interests of OGIF and Morocco’s largest financial institutions with those of Sound Energy.
“We see huge short term upside potential in the equity of Sound Energy and look forward to what will certainly be a successful future together.”
Meanwhile, Sound also confirmed the successful extension of its well test under its Tendera licence.
The firm has flowed just less than 1.0 Bscf from TE-7 over a period of 56 days continuous flow and has now started a final pressure build-up phase and the second, is the commencement of civil works at TE-8.
Throughout the test the flow rate was limited by the company at a maximum 40% drawdown to preserve completion integrity.
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