Sound Energy PLC (LON:SOU) has confirmed its acquisition of a 50% stake in the Sidi Moktar gas project, taking its ownership to 75%, and has concurrently announced a deal to bring in a new partner.
James Parsons, Sound Energy chief executive, highlighted that as a result of the two deals the company will see a $6mln cash injection, and will benefit from $18mln of new investment into the project.
A binding agreement has now been signed with PetroMaroc that will see Sound increase ownership of Sidi Moktar, which comprises three onshore gas permits, and hosts a number of currently ‘stranded’ discoveries.
Separately, a heads of agreement has been inked with Culebra Petroleum which will acquire 66% of the Sound Energy Morocco South subsidiary, which holds the Sidi Moktar stake.
In effect, Culebra will acquire 50% of Sidi Moktar for US$6mln of cash. It has also committed to investments of up to $18mln into the project.