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Sound Energy signs three well deal with Schlumberger in Morocco

The deal relates to the Tendrara licence where oil services giant has agreed to fund 80% of the investment in the first hole and 75% of the second and third.
Sound Energy signs three well deal with Schlumberger in Morocco
Drill ready: Sound is teaming up with on of the big wheels of the oil sector.

Sound Energy (LON:SOU) has signed a deal with Schlumberger that will see the oil services giant carry the majority of the costs of drilling three initial wells onshore in Morocco.

The deal relates to the Tendrara licence where Schlumberger has agreed to fund 80% of the investment in the first hole and 75% of the second and third.

After that the partners will bankroll further field development on a 50-50 basis.

Schlumberger, meanwhile, will earn half of Sound’s interest in the net profits from Tendrara.

Understandably, Sound chief executive James Parsons is “delighted” at bringing on board one of the powerhouses of the oil and gas sector.

“This transaction significantly reduces our financial exposure to the drilling programme while maximising the potential upside relating to drilling and development success,” he told investors.

“The involvement of Schlumberger in this project also helps de-risk the asset and further supports the quality of our technical work."

The acquisition of Tendrara has helped transform the company from an Italy-focused gas development play to one that has a growing Mediterranean presence.

The team-up with Schlumberger was first flagged up in October.

The Tendrara licence covers eight blocks across a total of 14,500 square kilometres and has the potential to be a significant gas discovery.

Well costs are put at around £6mln, so Schlumberger’s financial contribution is likely to be significant.

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February 04 2016

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