Sound Energy has stricken a deal to acquire all of Oil & Gas Investment Fund’s (OGIF) assets in Eastern Morocco – that includes 20% Tendrara, 75% of the Meridja project and a 75% stake in acreage close to Tendrara.
Sound Energy will thus acquire the OGIF’s hydrocarbon assets in eastern Morocco in exchange for 272m shares in the company, the company said. This means that the OGIF, which is owned by seven large Moroccan financial institutions, will be a second cornerstone investor with future non-executive board representation.
The company’s Chief executive James Parsons says the proposed deal gives the company a “hugely attractive, material and consolidated portfolio” across Eastern Morocco.
“We are pleased to have entered into heads of agreement with OGIF following the successful extended well test and I look forward to welcoming them to our shareholder register,” he said. “I have worked closely with the OGIF team for over 18 months now and their access to Moroccan debt capital and their relationship and influence in the country are second to none,” he added.
For his part, Mohammed Benslimane, chief executive of OGIF’s management company, said “Morocco is a fast growing and low risk emerging country with significant hydrocarbon potential […] This new partnership aligns the interests of OGIF and Morocco’s largest financial institutions with those of Sound Energy.”
Last December, Sound Energy PLC won regulatory approval from Moroccan authorities to take control of 75% interest in the Sidi Mokhtar onshore licenses.
Sound Energy confirmed the success of a second TE-7 gas well lying only 1.6 km away from its TE-6 first well.