Sound Energy, the Mediterranean-focused UK independent, has signed heads of terms with Maghreb Petroleum for a 25% stake in three onshore oil and gas permits in the Sidi Moktar region of Morocco.
Maghreb had given Sound a two-month exclusivity period to negotiate the acquisition.
Sound now has an option on the three permits any time before the first gas is produced from the area. If it takes up the option, Sound will issue Maghreb with shares in the company worth £3.57 million.
Sound will also pay Maghreb a 1.6% net profit interest in any future cashflows derived from the two existing wells that have already been drilled on the permits.
James Parsons, Sound chief executive, said: “The option will, when granted, enable Sound Energy to secure a 25% carried interest in an already successfully drilled gas discovery with potential near term production and significant deeper exploration potential.
“An interest in Sidi Moktar would also represent the second material asset in Sound Energy’s onshore Moroccan gas portfolio, which is underpinned by strong European gas fundamentals.”
The company now plans to work with the other partners on the Sidi Moktar licences, with a view to accelerating progress on the licence area.
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