(Alliance News) -Â Sound Energy PLC on Monday said it has agreed to buy Schlumberger Silk Route Services Ltd.
The acquisition will boost its participating interests in the Anoual and Greater Tendrara exploration permits in eastern Morocco by 27.5% to 75%.
Further, SSRS holds an 27.5% indirect interest in the Tendrara concession, which means that following completion of the acquisition, Sound Energy will control operated working interests of 75% in the exploration permits as well as the concession.
As consideration, the Moroccan-focused upstream gas company will pay the seller, Schlumberger Holdings II Ltd, an initial nominal USD1.00 on completion, and may make further payments under a profit sharing deed.
Under the deed, Sound Energy will pay between 8% and 11% of total net profit arising from the concession over a period of 12 years from first commercial production.
"We are delighted to have increased our working interest in our principal assets in eastern Morocco on highly attractive terms. 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," said Executive Chair Graham Lyon.
Shares in Sound Energy were up 6.9% at 1.55 pence in London on Monday.
By Lucy Heming;Â lucyheming@alliancenews.com
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Sound Energy (SOU)