Sound Energy begins farm-out process for Sidi Moktar licence

Upstream gas company Sound Energy has commenced a formal farm-out process for its Sidi Moktar onshore gas project in central Morocco.

The development comes after the company has received ministerial approval for the Sidi Moktar onshore petroleum agreement awarded to it in February.

Prior to the move, the company completed further subsurface evaluation of the Western area of the onshore licence and received third-party interest.

Under the agreement, Sound Energy has a 75% operated position in the licence, while the remaining interest is held by Morocco’s Office National des Hydrocarbures et des Mines (ONHYM).

The farm-out process for the licence will finance the forward 2018 work programme.

The licence is spread over an area of 4,499km².

Last November, the area was projected to contain 28 Liassic, Triassic and Paleozoic leads based on a study, which highlighted a best case of 8.9Tcf with a high of 11.2Tcf and a low case of 6.7Tcf unrisked gas originally in place.

The licence also hosts an existing gas discovery in the Lower Liassic (Kechoula).

The company aims to leverage its proximity to existing infrastructure and gas demand, including the state-owned OCP Phosphate plant.

Meanwhile, Sound Energy has secured environmental impact assessment (EIA) approval for the TE-9 and TE-10 wells at the Tendrara-Lakbir permit, which is located onshore Morocco.

The approval covers eight wells across a broad area, including the TE-9 and TE-10 drilling locations under consideration.

The firm noted that the approval allows it to now finalise its preparations for planned wells.