Sound Energy receives regulatory approval to acquire 75% interest in Sidi Moktar, Morocco

Upstream gas company Sound Energy has procured approval from the Moroccan regulatory authorities to receive the control of 75% operated interest in the Sidi Moktar licences.

This Sidi Moktar permit is located at the Essaouira Basin of central Morocco.

Terms of the acquisition were previously announced by the company.

The Sidi Moktar licences include three onshore gas permits that cover 2,700km².

It also has a material existing gas discovery in the Lower Liassic region where two wells have already been drilled.

Sound Energy acquired 50% operated interest in the Sidi Moktar licences from PetroMaroc Corporation and 25% working interest in the same site from Maghreb Petroleum Exploration (MPE).

After this acquisition, the remaining 25% interest in the Sidi Moktar licences is to be owned by Morocco's Office National des Hydrocarbures des Mines.

For this transfer, Sound Energy will issue a total of 43.02 million new ordinary shares of 1p to PetroMaroc and MPE.

An application will be made for the New Ordinary Shares, which rank pari passu with the company's existing ordinary shares, to be admitted to trading on AIM.

Various lock-in arrangements will be applicable to these new shares and dealings are expected to commence on 16 December. 

According to the previously announced deal, after the lock-in period, Sound Energy will receive 50% of the proceeds in excess of 50p per ordinary share from any future sales of PetroMaroc's New Ordinary Shares.

Located adjacent to the Meskala Field, Sidi Moktar permit hosts around 40 wells with a pipeline and production facilities for gas and condensate.