Sign up USA
Proactive Investors - Run By Investors For Investors

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.

Ian_55ae0ddd437b7.jpg


Register here to be notified of future SOU Company articles
View full SOU profile

Sound Energy PLC Timeline

Related Articles

genex-power_Simon-Kidston-757.jpg
November 23 2016
Simon Kidston presented at Mines and Money Melbourne.
onshore drilling operation
September 23 2016
DT Ultravert is on test with the oil field services giant Schlmberger and potentially solves the problem of ‘bashing’.
oil barrels in a stack
February 21 2017
Oil is flowing from the Opuama field into the market, now that Eland has established a shipping operation.
Copyright © Proactiveinvestors.com, 2017. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use