Sound Energy, the Morocco focussed upstream gas company, said it was awarded a petroleum contract with 75 per cent interest over eight years for an expanded Sidi Moktar area in central Morocco.
The contract with Sound Energy was given by L'Office National des Hydrocarbures et des Mines (ONHYM), the Moroccan state regulator for petroleum operations, and will come into force on approval of the Moroccan Energy and Finance Ministries, the oil and gas company said in a statement.
"Sidi Moktar represents an exciting second leg to our Moroccan portfolio, following on from Sound Energy's success at Tendrara,” said Sound Energy's CEO James Parsons. “The company is actively pursuing and remains committed to the development and expansion of its Moroccan portfolio."
The Sidi Moktar petroleum agreement covers a large area extending across and beyond the permits in the Essaouira Basin that were formerly known as the Sidi Moktar Nord, Sud and Ouest Permits. The new Sidi Moktar petroleum agreement covers some 4,499 square kilometres and will be named 'Sidi Moktar Onshore' including sub-areas termed 'Sidi Moktar I', 'Sidi Moktar II' and 'Sidi Moktar III'.
The contract, once ratified, will give Sound Energy operatorship along with a 75 per cent interest, while ONHYM will hold the remaining 25 per cent.
As with all Moroccan licences, the agreement will be divided into 3 phases, each with pre-agreed work commitments.
Under the agreement, Sound Energy will have to, in the first two and half years, acquire and process 500 kilometres of 2D seismic, a short well test of the Koba-1 well and abandonment of Koba-1 and Kamar-1, if required. The Koba-1 well was re-entered and tested by Sound Energy in 2017.
In the first three years of the agreement, it will have the option to drill one exploration well with a minimum Liassic objective and acquire and process 150 square kilometres of 3D seismic.
In November, Sound Energy said its initial volume estimates of the exploration potential of Sidi Moktar, in the best case was 8.9 Tcf with a high of 11.2 Tcf and a low case of 6.7 Tcf, unrisked gas originally in place (gross). Additionally, Sidi Moktar contains an existing gas discovery in the Lower Liassic (Kechoula).