MOROCCO – Sound Energy, a gas company, has entered into a sale and purchase agreement with Schlumberger Holdings II Limited to acquire the entire issued share capital of Schlumberger Silk Route Services Limited (SSRS).
SSRS holds a 27.5% participating interest in the Anoual and Greater Tendrara exploration permits in Eastern Morocco together with a 27.5% indirect interest in the Tendrara Concession through its contractual relationship with the Group.
”We are delighted to have increased our working interest in our principal assets in Eastern Morocco on highly attractive term,” Graham Lyon, Executive Chairman, Sound Energy said.
“This accretive transaction will, when completed, underline Sound Energy’s position as the leading gas developer in Morocco and position us to generate enhanced returns, cashflow and value as we move forward the phased development of the TE-5 Horst.”
In consideration for the Acquisition, the Group shall make an initial payment of US$1 to the Seller in cash on completion and may make future payments to the Seller pursuant to a Profit Sharing Deed (PSD).
Under the principal terms of the PSD, the Group will pay to the Seller an amount equivalent to between 8% and 11% of total net profits (after costs, taxes and other applicable deductions) arising from the Concession over a period of 12 years from first commercial production from the Concession.
“The increased position on the licences significantly enhances our discovered and undiscovered resource position in Eastern Morocco as we continue to deliver on our phased development strategy,” added Lyon.
“Importantly, upon securing the funding envisaged under the Heads of Terms previously entered into with Afriquia Gaz, the Company will remain fully funded for its increased 75% working interest of planned phase 1 Tendrara Concession capital investments required until planned first gas.”
Following completion of the acquisition, Sound Energy will control operated working interests of 75% in the Exploration Permits and in the Concession.
