Sound Energy, the Mediterranean and European focused upstream gas company signed a binding agreement with Oil & Gas Investment Fund S.A.S (OGIF), which allows it to acquire a 55% interest of OGIF’s 75% stake in the Meridja exploration permit, so called Reconnaissance Permit, onshore Morocco, wrote Oil Voice. Sound Energy expects to drill its first well in the Meridja area of 9,000 square km, which is adjacent to the company’s existing Tendrara license and has the same fundamental geology.
Sound Energy will pay OGIF $100,000 for the share. It will also conduct and fund early stage commitments under the Reconnaissance Permit up to a maximum of $200,000. The company will pay additional $150,000 to OGIF for the operatorship of the permit. The Reconnaissance Permit, recently extended by OGIF, will expire in August 2016.
The option to acquire the stake “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 CEO, said, according to Energy Voice.
Morocco’s Office National des Hydrocarbures des Mines (ONHYM) holds the remaining 25% stake of the Meridja permit.