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Sound Energy expands Moroccan holdings

EGYPT UK-BASED Sound Energy is set to expand mini-LNG plant.
its holdings in eastern Morocco through the Graham Lyon, Sound Energy’s executive
acquisition of Schlumberger Silk Route Services chairman, described the acquisition as a pos-
(SSRS), an affiliate of Schlumberger, one of the itive development. “We are delighted to have
world’s largest oilfield service providers (OSPs). increased our working interest in our principal
Sound Energy announced the deal in a state- assets in eastern Morocco on highly attractive
ment date June 14, saying that it had signed terms,” he said. “This accretive transaction
a sales and purchase agreement (SPA) with will, when completed, underline Sound Ener-
Schlumberger Holdings II. Under the SPA, the gy’s position as the leading gas developer in
UK-based firm will be able to acquire all of SSRS’ Morocco and position us to generate enhanced
issued share capital. returns, cashflow and value as we move forward
As a result of this transaction, Sound Energy the phased development of the TE-5 Horst. The
will also acquire SSRS’ 27.5% stake in the explo- increased position on the licences significantly
ration permits issued for the Anoual and Greater enhances our discovered and undiscovered
Tendrara licence areas, bringing its stake in these resource position in Eastern Morocco as we
assets up to 75%. It will also gain SSRS’ 27.5% continue to deliver on our phased development
indirect interest in the Tendrara concession, strategy.” ™
raising its own working interest up to 75%.
According to the statement, Sound Energy
has agreed to make an initial payment of $1.00
for SSRS. It has also signed a profit-sharing deed
(PSD) that requires it to pay the Schlumberger
affiliate an amount equivalent to 8-11% of all net
profits earned from the Tendrara concession in
the first 12 years after the site begins commercial
production.
Sound Energy is hoping that the deal will
complement its plans for the development of
TE-5 Horst, a field within the Tendrara con-
cession that contains about 650bn cubic feet
(18.4bn cubic metres) of gas in place (GIP). The
acquisition “significantly enhances [the com-
pany’s] discovered and undiscovered resource
position,” it said.
The statement also stressed, though, that the
addition of SSRS’ assets to its Moroccan port-
folio would not affect Sound Energy’s plans for
developing Tendrara and other fields in the east-
ern part of the country in a phased manner. The
company has the funding to cover its 75% share
of costs for the first phase of work at the conces-
sion, which may involve the construction of a The company’s assets are in eastern Morocco (Image: Sound Energy)

PERFORMANCE
NLNG signs supply deals with 3 local firms

NIGERIA THE Nigeria LNG (NLNG) consortium Energy. These supply and purchase agreements
revealed last week that it had signed supply deals (SPAs) provide for the delivery of 1.1mn tonnes
with three local companies. per year (tpy) of LNG, he said.
Speaking at the CEO Roundtable session of He further indicated that NLNG had negoti-
the Nigeria International Petroleum Summit ated the deals within the framework of efforts to
(NIPS), NLNG’s managing director Tony Attah promote domestic consumption of LNG, either
said the group had recently signed deals with as a fuel for manufacturing facilities and power
Asiko Power, Bridport Energy and Gas-Plus plants or as feedstock for LPG.

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