Sound Energy Share News (SOU)

(Sharecast News) - Morocco-focussed upstream gas company Sound Energy reported a 24-month extension to the initial period of the Sidi Moktar Permits, onshore Morocco, on Tuesday.
The AIM-traded firm had announced the award of a new petroleum agreement related to the Sidi Moktar Permits on 12 February.

It said the permits cover 4,712 square kilometres in the Essaouira basin, central Morocco, with an initial period of two years and six months.

The company holds an operated 75% position in the permits, with the remaining 25% held by L'Office National des Hydrocarbures et des Mines (ONHYM).

It said on Tuesday that, to further disruption caused by the impact of the Covid-19 pandemic, during which it had been in regular dialogue with the regulatory authorities, ONHYM had approved a 24-month extension to the initial period of the petroleum agreement so the company could complete the committed work programme.

Subject to the issue of the 'Joint Arreté' signed by the minister in charge of energy and the minister in charge of finance, the length of the initial period would now be four years and 6 months, starting on 9 April 2018.

The work programme commitments for the initial period remained unchanged.

Sound Energy said the lengths of the first and second complimentary periods, which would commence upon the successful completion of the recently-extended initial period, remained unchanged at three years, and two years and six months, respectively.

"We are not alone in dealing with the disruptions brought about by the Covid-19 pandemic and we are pleased that ONHYM have signed an amendment to extend the initial period extension by two years in order to complete our exploration operations," said chief operating officer Mohammed Seghiri.

"We continue to look forward to unlocking the prize of the pre-salt potential that we believe exists in this area."

At 1130 BST, shares in Sound Energy were up 1.51% at 1.34p.