Sound Energy has entered into a three-well field management agreement with Schlumberger for the Tendrara licence, onshore Morocco.
Under the agreement, Schlumberger will provide integrated technical services, equipment and personnel to Sound Energy, which operates Tendrara.
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. Schlumberger will be granted an upside linked to production performance.
As part of its entry into Morocco and Farm-in with the Moroccan Oil and Gas Investment Fund, the company is required to fund 100% of the costs of the first three appraisal wells on the Tendrara Licence.
Schlumberger has now agreed to fund 80% of the investment in the first well and 75% of the second and third.
Sound Energy will continue to be required to fund the remaining costs on the first three appraisal wells under the Farm In.
Sound has granted Schlumberger a net profit interest of half of the company’s interest (which equates to 18.75% initially increasing to 27.5% after the first well).
Schlumberger will provide integrated technical and drilling services, equipment and personnel.
Sound Energy’s chief executive James Parsons, said the deal will propel the company towards becoming one of the leading Mediterranean and North African gas companies.
He added: “This transaction significantly reduces our financial exposure to the drilling programme while maximising the potential upside relating to drilling and development success.
“The involvement of Schlumberger in this project also helps de-risk the asset and further supports the quality of our technical work.”
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