Sound Energy is pleased to announce that it has, together with its licence partners, successfully concluded a re-negotiation of the terms of its Anoual Exploration Permits (the "Permit') with Morocco's National Office of Hydrocarbons and Mines ("ONHYM") which aligns the work programme commitments on the Permit and the Company's continued pursuit to unlock the exploration potential of the Eastern Morocco basin, with the expected phasing of the Company's recently announced Tendrara Production Concession Phase 1 development plan.
The Permit, which became effective on 31 August 2017 and covers an area of some 8,873 square kilometres has a duration of 8 years and, as with all Moroccan exploration permits, is divided into 3 phases with each phase having pre-agreed work commitments. The original work commitments under the Permit were:
· Initial period of 3 years expiring on 31 August 2020: FTG-aerogradiometry, 600 kilometres of 2D seismic and 150 square kilometres of 3D seismic.
· Subsequent optional first complimentary period of 2 years and 6 months: 1 exploration well with Triassic objective.
· Optional second complimentary period of a further 2 years and 6 months: A further single exploration well with Triassic objective.
The amended work programme commitments under the Permit are now as follows:
· Initial period of 4 years and 4 months from 31 August 2017 (the "Initial Period"): FTG-aerogradiometry and 600 kilometres of 2D seismic and 1 exploration well with Triassic objective (to be scheduled in 2021).
· Optional first complimentary period of a further 2 years and 6 months (from 31 December 2021): if the results of the drilling of the exploration well drilled in the Initial Period are likely to constitute a commercially exploitable discovery, the Company will acquire 150 km2 of 3D seismic or its equivalent in 2D seismic data. If the results of the exploration well drilled in the Initial Period are not likely to constitute a commercially exploitable discovery, the Company will undertake further geological and geophysical studies but will not be required to acquire this additional seismic.
· Optional Second complimentary period of a final 2 years and 6 months: A further single exploration well with Triassic objective.
The effective date of the Permit remains the same. The Company clarifies that the commitment to acquire FTG-aerogradiometry and 600 kilometres of 2D seismic has already been fulfilled and approved as such by ONHYM. The Company holds an operated 47.5% interest in the Permit, with the remainder held by joint venture partners Schlumberger with a 27.5% share and ONHYM with a 25% share.
Mohammed Seghiri, Sound Energy's COO, commented:
"Despite the challenges caused by the COVID-19 restrictions, I am delighted to have re-aligned our committed exploration work programme at the Anoual Exploration Permit in Eastern Morocco so it dovetails more efficiently with the proposed phasing of our Phase 1 Development Plan at the Tendrara Production Concession in a manner that underscores both our confidence in the potential of the basin as a future significant gas producing province and our ability to deploy capital judiciously across the portfolio."