Sound Secures Moroccan Permit Extension
Morocco-focused Sound Energy has secured a 24-month extension to the initial phase of the Sidi Moktar permits, it reported on October 13.
Sound obtained the eight-year permits, spanning 4,712 km2 of the Essaouira basin in central Morocco, in February 2018. The permits gave it two and a half years to acquire seismic data. The London-listed company obtained an extension after citing disruptions caused by the coronavirus pandemic.
The work commitments remain unchanged. After the initial seismic phase, Sound will have an optional three-year period to drill an exploration well, and then another three years to sink a second one.
Sound estimates the Sidi Moktar acreage to hold 11.2 trillion ft3 of in-place gas. The company has a 75% interest in the permits, while state-owned regulator ONHYM has the remaining 25%. Sound's flagship asset is the Tendrara concession in eastern Morocco, where it plans to monetise gas first using a small-scale liquefaction plant and later a pipeline connection.