LONDON (Alliance News) - Sound Energy PLC on Monday said it has been granted an option to acquire a 55% interest in the Meridja permit, onshore Morocco, following a deal with Oil & Gas Investment Fund SAS.
The permit is adjacent to the upstream gas company's existing Tendrara licence and is a "highly prospective" 9,000 square kilometre area with the "same fundamental geology" as Tendrara, where Sound Energy expects to drill its first well shortly.
"The option secures exclusive access to a key permit adjacent to Sound Energy's existing Tendrara licence and will enable us to increase our upside potential significantly should the first well at Tendrara be as successful as we hope," James Parsons, Sound Energy's chief executive, said.
Oil & Gas Investment Fund currently holds a 75% interest in a reconnaissance permit over the Meridja area, with the remaining 25% interest held by Morocco's Office National des Hydrocarbures des Mines.
Sound Energy will pay USD100,000 to Oil & Gas Investment Fund, and will conduct and fund early stage commitments under the reconnaissance permit up to a maximum of USD200,000.
In the event it exercises its option, Sound Energy would pay a further USD150,000 to Oil & Gas Investment Fund. It also would carry Oil & Gas Investment Fund and Morocco's Office National des Hydrocarbures des Mines for costs up to the end of a first Meridja exploration well.
Shares in Sound Energy were up 1.4% at 18.64 pence on Monday morning.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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Sound Energy (SOU)