23 July 2018
Sound Energy plc
("Sound Energy" or the "Company")
Eastern Morocco : Schlumberger Conversion to Direct Licence Position and signature of revised Field Management Agreement
Sound Energy, the Moroccan-focused upstream gas company, announces, following the initial success in Eastern Morocco and in anticipation of the forthcoming drilling programme, the initiation of the process of converting the existing 27.5% synthetic interests held by an affiliate of Schlumberger Oilfield Holdings Limited ("Schlumberger") in the Tendrara Lakbir permits, the Anoual permits and the Matarka reconnaissance licence (together the "Eastern Morocco Portfolio") into 27.5% joint venture licence participating interests in the Eastern Morocco contract area. Sound Energy will remain the operator of the Eastern Morocco Portfolio.
In accordance with Moroccan requirements, the conversion of Schlumberger's interests are subject to the approval of the licence joint venture partners and the relevant Moroccan ministries.
The Company's interests in the Eastern Morocco Portfolio consist of an operated 47.5% participating interest. The remaining interests in the Eastern Morocco Portfolio are held 27.5% by Schlumberger pursuant to an existing Field Management Agreement entered into with the Company (prior to the interest conversion now initiated) and 25% by Morocco's L'Office National des Hydrocarbures et des Mines.
Sound Energy also confirms that it has entered into a revised Field Management Agreement with Schlumberger which re-confirms the parties' materially unchanged working relationship post-conversion and their intention to continue to collaborate strategically across their interests in the Eastern Morocco Portfolio, including in relation to the development of the existing Tendrara discovery and to the drilling at Tendrara, where Sound Energy and Schlumberger have now approved the first two defined wells, namely TE-9 and TE-10.
Following the recent application for a development concession relating to the Tendrara gas discovery (the "Development Concession"), Sound Energy and its licence Joint Venture partners intend to apply for a new 8-year petroleum agreement over the entire, combined, Eastern Morocco Portfolio area (except the areas relating to the Development Concession and to the Anoual petroleum agreement) shortly.
Further announcements will be made, as appropriate, in due course.
James Parsons, Sound Energy's CEO commented:
"I am delighted to have begun the process of bringing Schlumberger directly onto the various licences in Eastern Morocco and look forward to further drilling success together."
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
For further information please contact:
Vigo Communications - PR Adviser
Tel: 44 (0)20 7390 0230
James Parsons, Chief Executive Officer
Smith & Williamson - Nominated Adviser
Tel: 44 (0)20 7131 4000
RBC Capital Markets - Joint Broker
Tel: 44 (0)20 7653 4000
Macquarie Capital (Europe) Limited - Joint Broker
Tel: 44 (0)20 3031 2000