Schlumberger and Sound Energy expand cooperation in Morocco
SEVENOAKS, UK -- Sound Energy, the African and European-focused upstream gas company, has announced the signature of binding heads of terms with Schlumberger, which will expand Sound Energy's relationship with Schlumberger into Meridja and the Tendrara relinquished area(s), in exchange for a full carry on Sound Energy's forthcoming Eastern Moroccan geophysical survey program, estimated at $27.2 million and subject to completion of the Company's recently announced acquisition of these interests from Oil & Gas Investment Fund S.A.S.
The binding heads of terms will, subject to contract, result in the extension of the existing Field Management Agreement between the Company and an affiliate of Schlumberger Oilfield Holdings Limited to include Meridja and the area(s) of Tendrara, relinquished in accordance with the Morrocan Hydrocarbon Code. Under the FMA Extension, subject to contract, Schlumberger will be granted a 27.5% net profit interest in the Meridja area and a 27.5% net profit interest in the Tendrara Relinquished Area(s).
In exchange, Schlumberger has agreed to contribute services in kind to cover the agreed scope of the Company's forthcoming Eastern Moroccan geophysical program and to cover its pro rata share of costs thereafter. The Eastern Moroccan geophysical program includes the acquisition and processing of approximately 2,600 km of new 2D seismic and 24,000 km2 of Gravity Gradiometry. The seismic acquisition program will cover the TAGI and Paleozoic across the Tendrara and Meridja areas.
The Company plans to complete the program over a 12-month period in stages, with each stage outputting an updated prospect inventory, which will undergo review by an independent competent person.
An update on the Company's Extended Well Test at TE-7 and the results of the ongoing TE-8 laboratory testing will be provided, as appropriate, in due course.
