Sound Oil in Talks to Buy Stake in Tendrara Gas Licence in Morocco

Sound Oil on Monday said it has been granted a 30 day period of exclusivity from the Moroccan Oil and Gas Investment Fund (OGIF) in relation to a potential farm in to the Tendrara licence, onshore Morocco.

The grant of exclusivity initiates exclusive negotiations between Sound Oil and OGIF and follows the submission of an indicative offer letter from Sound Oil to OGIF in respect of the Tendrara licence.

The Tendrara licence is currently owned 75 percent by OGIF and 25 percent by The National Office of Hydrocarbons and Mines (ONHYM), the Moroccan national hydrocarbon and mineral company - which has a 25 percent carried interest during the exploration phase

Sound Oil has offered to assume operatorship of the Tendrara licence and to take a 55 percent working interest (with OGIF retaining 20 percent and ONYHM the remaining 25 percent). 

The onshore Tendrara licence includes two stranded gas discoveries with low risk appraisal potential and significant blue sky exploration upside, the company said.

The licence area covers eight blocks across a total of 14,500 sq kms in the North East of Morocco. 

Seven wells have been drilled on the Tendrara licence to date, of which five discovered hydrocarbons and two were tested successfully, Sound Oil said.  Gas produced is expected to either feed the Moroccan domestic market or be connected to the Gazoduc Maghreb Europe (GME) gas export pipeline.