Project Profile

Location: Tendrara Basin, between the Middle Atlas to the north and the High Atlas to the south, onshore Morocco
Area: 14,548 sq. km
Depth:  3,459m


Eight Exploration Blocks comprising the Tendrara Lakbir Petroleum Agreement onshore Morocco. The Tendrara Lakbir Licence covers an area of 14,548 sq. km. It covers the majority of the Tendrara Basin, which lies between the Middle Atlas to the north and the High Atlas to the south and which is one of Morocco\'s prospective basins for Triassic gas. Five wells drilled within the Licence Area have encountered gas-bearing Triassic sands of the Tagi Formation. The Tagi is the host reservoir for Morocco\'s producing Meskala gas field, along strike to the west in the Essaouira Basin. All these gas discoveries have been charged from the prolific Silurian source rocks that are an integral part of the proven Palaeozoic-Early Mesozoic petroleum systems covering large parts of Libya, Algeria and Morocco. The Tendrara Licence is currently owned 75% by OGIF and 25% by The National Office of Hydrocarbons and Mines (\"ONHYM\"), the Moroccan national hydrocarbon and mineral company - which has a 25% carried interest during the exploration phase.

Sound Energy, subject to regulatory approvals, will assume Operatorship of the Licence and take a 55% working interest. The 55% working interest will be secured in two tranches, with tranche one (37.5%) awarded on completion of the transaction and the second tranche (17.5%) secured once Sound Energy commits to the second exploration phase (which would include a second well).

Sound Energy has Net effective interest of  27.5% following Field Management Agreement with Schlumberger. (December, 2015)


Operators:

Sound Energy (previously named Sound Oil Plc): Operator with 27.5% interest (under FMA agreement)

Moroccan Oil and Gas Investment Fund (OGIF): 20% interest

National Office of Hydrocarbons and Mines (ONHYM): 25% interest

Schlumberger Oilfield Holdings Limited: 18.75% interest initially increasing to 27.5% after the first well (under FMA agreement)

Contractors:

Schlumberger: Field Management Agreement (September 2015)

Entrepose Drilling Morocco: Supply of a HH300 rig for the first two wells on the licence (which are expected to be back to back) (December 2015)