It confirms the security over the Greater Tendrara area which spans some 14,500 square kilometres and is 47.5% held by Sound, alongside partners Schlumberger and Morocco’s state oil and gas firm ONHYM which own 27.5% and 25% respectively.
"I am delighted to announce receipt of approval from the Moroccan Energy and Finance Ministries for the Greater Tendrara petroleum agreement and that, as a result, the Greater Tendrara petroleum agreement has now become effective - securing Sound Energy's rights to this potentially transformational acreage up to 2026,” said James Parsons, Sound chief executive.
“We look forward to the commencement of our exploration drilling programme in the near future."
The agreement sets out three phases, with accompanying work commitments.
In the first four years, Sound and its partners will be required to drill at least two wells while the first two-year extension period will require one further well to be drilled and a second two-year extension period will require a fourth new well to be drilled.
Sound noted that the Greater Tendrara Petroleum Agreement unites the areas covered by the Tendrara petroleum agreement granted in April 2013 and the Matarka reconnaissance licence granted in July 2017.