Sound Energy said it has begun the process for Schlumberger to convert its existing Morocco interests into a joint venture license in the Eastern Morocco contract area.
The Moroccan-focused upstream gas company said Schlumberger’s 27.5 per cent “synthetic interest” in the Tendrara Lakbir permits, the Anoual permits and the Matarka reconnaissance licence held by its Morocco unit will convert into 27.5 per cent joint venture licence participating interests in the Eastern Morocco contract area of which Sound Energy will remain the operator.
In accordance with Moroccan requirements, the conversion of Schlumberger's interests are subject to the approval of the licence joint venture partners and the relevant Moroccan ministries.
Sound’s interests in the Eastern Morocco Portfolio consist of an operated 47.5 per cent participating interest.
The remaining interests in the Eastern Morocco Portfolio are held 27.5 per cent by Schlumberger pursuant to an existing field management agreement entered into with the company (prior to the interest conversion now initiated) and 25 per cent by Morocco's L'Office National des Hydrocarbures et des Mines.
Sound Energy also confirmed that it has entered into a revised field management agreement with Schlumberger which re-confirms the parties' materially unchanged working relationship post-conversion and their intention to continue to collaborate strategically across their interests in the Eastern Morocco Portfolio, including the development of the existing Tendrara discovery and the drilling at Tendrara, where Sound Energy and Schlumberger have now approved the first two defined wells, namely TE-9 and TE-10.
Following the recent application for a development concession relating to the Tendrara gas discovery, Sound Energy and its licence joint venture partners intend to apply for a new 8-year petroleum agreement over the entire, combined, Eastern Morocco Portfolio area shortly, which would exclude the areas relating to the development concession and to the Anoual petroleum agreement, the company said.
James Parsons, Sound Energy's CEO said: "I am delighted to have begun the process of bringing Schlumberger directly onto the various licences in Eastern Morocco and look forward to further drilling success together."
Separately, Sound Energy said it signed a rig contract and started civil works at the TE-9 well site on the Tendrara licence, onshore Morocco. This follows the Environmental Impact Assessment approval which was awarded by the Moroccan authorities and announced by the company on 6 June 2018. The first stage of the civil works is the construction of the access road to site.