- \n
- The Group will have increased participating interests in the Anoual and Greater Tendrara exploration permits in Eastern Morocco by 27.5% to 75%, together with full control over its 75% participating interest in the Tendrara Concession<\/li>\n
- Accretive acquisition on highly attractive terms<\/li>\n
- Positions Sound Energy to generate enhanced returns, cashflow and value as it moves forward the phased development of the TE-5 Horst<\/li>\n
- Significantly enhances discovered and undiscovered resource position<\/li>\n
- Increased participating interest to 75% will not impact the planned phased development strategy in East Morocco and underlines Sound Energy’s position as a leading gas developer in country<\/li>\n
- Sound Energy will remain fully funded for its increased 75% working interest of planned phase 1 Tendrara Concession capital investments required until first gas, subject to finalising funding arrangements previously announced with Afriquia Gaz, our strategic partner and a major participant in the Moroccan gas industry<\/li>\n<\/ul>\n
SSRS holds a 27.5% participating interest in the Anoual and Greater Tendrara exploration permits in Eastern Morocco together with a 27.5% indirect interest in the Tendrara Concession through its contractual relationship with the Group. Following completion of the Acquisition, Sound Energy will control operated working interests of 75% in the Exploration Permits and in the Concession.<\/p>\n
In consideration for the Acquisition, the Sound Energy shall make an initial payment of US$1 (one US dollar) to the Seller in cash on completion and may make future payments to the Seller pursuant to a Profit Sharing Deed.<\/p>\n
Under the principal terms of the PSD, the Group will pay to the Schlumberger Silk Route Services Limited an amount equivalent to between 8% and 11% of total net profits (after costs, taxes and other applicable deductions) arising from the Concession over a period of 12 years from first commercial production from the Concession. In the event of a cash disposal by the Company of part or the whole of the SSRS’s interest in the Exploration Permits on or before 28 February 2023, the Seller would be entitled to receive from Sound Energy 27.5% of the net cash proceeds related to the disposal of the SSRS Permit Interest, rising to 55% of proceeds related to the SSRS Permit Interest in the event of such a disposal occurring prior to 31 December 2021.<\/p>\n
Upon completion of the Acquisition, Sound Energy will grant to the Seller a share charge over 100% of the share capital of Sound Energy Morocco East Limited, the Company’s wholly owned subsidiary, in connection with the PSD and the Exploration Permit Disposal Right. Under the terms of the PSD, there is a mechanism for reducing this share charge upon certain milestones having been met and also for replacing the share charge with an alternative security mechanism following the first payment arising from the PSD.<\/p>\n
The table below summarises the Discovered Gas Originally in Place and the Contingent Resources for the Tendrara TE-5 Horst within the Concession evaluated by RPS Energy Consultants, as announced by the Company on 20 December 2017 and 23 January 2018 and the net interest to the Company on completion of the Acquisition.<\/p>\n
Discovered In-Place volumes and Contingent Resources<\/strong><\/p>\n
![\"Photo](\"https:\/\/i0.wp.com\/images.energy365dino.co.uk\/standard\/191361_24df4211d1e94ca9838b.jpg?w=1170&ssl=1\")
<\/div>\n<\/p>\n
Pursuant to completion of the Acquisition, Sound Energy will control rights to an additional 104 billion cubic feet (Bcf) of certified2 2C Contingent Resources and acquire an additional 5.3 trillion cubic feet (Tcf) of unrisked exploration upside potential3 in TAGI features across the Anoual and Greater Tendrara exploration permits.<\/p>\n