News from SOund energy
Sound Energy, the African and European focused upstream gas company, is pleased to announce, following receipt of regulatory approval, the transfer to the Company of the 75% operated interest in the Sidi Moktar licences, onshore Morocco (the "Acquisitions").
The terms of the Acquisitions were announced by Sound Energy on 14 January 2016, 10 March 2016 and 23 September 2016 respectively.
The Sidi Moktar licences consist of three onshore gas permits (the "Sidi Moktar Licences") covering 2,700 square kilometres in the Essaouira basin, centralMorocco and contain a material existing gas discovery in the Lower Liassic ("Kechoula"), where two wells have already been drilled, and significant Triassic exploration potential.
The Acquisitions consisted of a 50% operated interest in the Sidi Moktar Licences from PetroMaroc Corporation Plc ("PetroMaroc") and the acquisition of a 25% working interest in the Sidi Moktar Licences from Maghreb Petroleum Exploration S.A. ("MPE"). Following the Acquisitions, the remaining 25% interest in the Sidi Moktar Licences is held by Morocco's Office National des Hydrocarbures des Mines ("ONHYM").
As a result of the transfer, the Company will issue and allot a total of 43,022,714 new ordinary shares of 1p each in the Company (the "New Ordinary Shares") to PetroMaroc and MPE. 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. Dealings are expected to commence at 8:00 a.m. on 16 December 2016. Various lock-in arrangements will apply to the New Ordinary shares.
As previously announced, the Company will receive 50% of the proceeds in excess of 50p per ordinary share from any future sales of PetroMaroc's New Ordinary Shares, after the lock in period.
The Company will now proceed with its plan to introduce partners to the Sidi Moktar Licences.