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(Alliance News) - Sound Energy PLC said it has concluded a re-negotiation of the terms of its Anoual exploration permits in eastern Morocco with the country's National Office of Hydrocarbons and Mines.
Sound Energy holds a 48% interest in the permit with joint venture partners Schlumberger and ONHYM holding a respective 28% and 25% stake.
The Morocco-focused upstream gas firm said the permit - which became effective on August 31, 2017 and covers 8,873 square kilometres - lasts for 8 years and is divided into 3 phases with each phase having pre-agreed work commitments.
Originally, work commitments under the permit were the completion of 600 kilometres of 2D seismic and 150 square kilometres of 3D seismic FTG-aerogradiometry for an initial three years expiring end of August 2020, completion of one exploration well within a subsequent optional first complementary period of two years and 6 months, and a further single exploration well within an optional second complimentary period of a further two years and six months.
The amended work programme commitments under the re-negotiated permit starts with FTG-aerogradiometry and 600 kilometres of 2D seismic and 1 exploration well in four years and four months from August 31, 2017.
Following that - in the optional first complimentary period of a further 2 years and 6 months from the end of December 2021 - if the results of the drilling of the exploration well drilled are likely to constitute a commercially exploitable discovery, the company will acquire 150 square kilometeres of 3D seismic or its equivalent in 2D seismic data. However, if the results of the exploration well drilled are not likely to constitute a commercially exploitable discovery, it will undertake further geological and geophysical studies but will not be required to acquire additional seismic.
In the optional second complementary period of a final two years and six months, a further single exploration well will be drilled.
Sound Energy noted that the commitment to acquire FTG-aerogradiometry and 600 kilometres of 2D seismic has already been fulfilled and approved by the Moroccan government body.
"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," said Chief Operating Officer Mohammed Seghiri.
The stock was trading 14% higher at 3.47 pence each on Monday morning in London and 77% higher so far in 2020.
By Ife Taiwo; ifetaiwo@alliancenews.com.
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