Sound Energy has announced that together with its license partners, it has successfully concluded a re-negotiation of the terms of its ‘Annoual Exploration Permits’ with the Moroccan National Office of Hydrocarbons and Mines (ONHYM).

According to the Moroccan upstream gas company, this aligns with the company’s drive to unlock the exploration potential of the Eastern Morocco basin, with the expected phasing of the recently announced Tendrara Production Concession Phase 1 development plan.

The area covered by the permit is about 8,873 square kilometres. The license went into effect on 31st August 2017 and is for 8 years. As every other Moroccan permit, it is divided into three phases with each phase having its own pre-agreed works commitments.

The company said the effective date of the permit remains the same. The company holds an operated 47.5 per cent interest in the permit, with a 27.5 per cent share being held by joint venture partners Schlumberger and a 25 per cent share owned by ONHYM.

Commenting on the new amendment, the Chief Operations Officer of Sound Energy, Mohammed Seghiri said “Despite the challenges caused by the COVID-19 restrictions, I am delighted to have re-aligned our committed exploration work programme at the Anoual Exploration Permit in Eastern Morocco so it dovetails more efficiently with the proposed phasing of our Phase 1 Development Plan at the Tendrara Production Concession in a manner that underscores both our confidence in the potential of the basin as a future significant gas-producing province and our ability to deploy capital judiciously across the portfolio.”

Below are the provisions of the initial work programme:

• “Initial period of 3 years expiring on 31 August 2020: FTG-aerogradiometry, 600 kilometres of 2D seismic and 150 square kilometres of 3D seismic.
• Subsequent optional first complimentary period of 2 years and 6 months: 1 exploration well with Triassic objective.
• Optional second complimentary period of a further 2 years and 6 months: A further single exploration well with Triassic objective.”

These are the amended work programme:

• “Initial period of 4 years and 4 months from 31 August 2017 (the “Initial Period”): FTG-aerogradiometry and 600 kilometres of 2D seismic and 1 exploration well with Triassic objective (to be scheduled in 2021).
• Optional first complimentary period of a further 2 years and 6 months (from 31 December 2021): if the results of the drilling of the exploration well drilled in the Initial Period are likely to constitute a commercially exploitable discovery, the Company will acquire 150 km2 of 3D seismic or its equivalent in 2D seismic data. If the results of the exploration well drilled in the Initial Period are not likely to constitute a commercially exploitable discovery, the Company will undertake further geological and geophysical studies but will not be required to acquire this additional seismic.
• Optional Second complimentary period of a final 2 years and 6 months: A further single exploration well with Triassic objective.”