Sound Energy Buys Option to Increase Stake in Meridja Permit, Morocco

AIM-listed Sound Energy, which describes itself as well-funded, has bought an option for a neighbouring block, announcing February 8 a binding agreement with Oil & Gas Investment Fund whereby OGIF granted Sound Energy an option to acquire a 55% interest in the Meridja permit, out of its 75% stake. 

"Meridja is adjacent to Sound Energy's existing Tendrara licence and is a highly prospective 9,000 km² area with the same fundamental geology as Tendrara, where Sound Energy expects to drill its first well shortly," Sound said. 

Sound will pay OGIF $100,000 and will conduct and fund early stage commitments under the exploration permit, up to a maximum of $200,000. On exercise of the option, Sound pays OGIF a further $150,000 and carries OGIF and state Office National des Hydrocarbures des Mines – which owns 25% – for costs up to the end of a first Meridja exploration well. The licence expires August 1.

UK Sound Energy has also brought output at its Nervesa onshore Italy discovery to 1mn ft³/d during daylight hours, preparatory to reaching 1.8mn ft³ over the coming months, it said February 9. All its output is sold to the Anglo-Dutch major Shell.

"Early production has been limited by Sound Energy to an initial rate of 1mn ft³/d during daytime hours and 0.7mn ft³/d overnight and the company will begin ramping up production levels over the coming months to the planned production rate of 1.8mn f³/d," it said. 

William Powell