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Energy

Sound Energy expands its Schlumberger collaboration in a deal worth US$27mln

It builds on the three-well agreement the pair inked covering Tendrara and follow-up agreement that will allow the US group to earn into the Badile operation near Milan, Italy.

Sound Energy PLC (LON:SOU) has expanded its relationship with the oil services giant Schlumberger.

The deal will see the AIM-listed gas exploration and development group receive a free carry on a US$27mln geophysical programme.

In return, Schlumberger will receive 27.5% stakes respectively in the newly acquired Meridja licence and the Tendrara relinquished areas. Both are in Morocco.

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It builds on the three-well deal the pair inked covering Tendrara and follow-up agreement that will allow the US group to earn into the Badile operation near Milan, Italy.

The eastern Moroccan geophysical programme, meanwhile, will include the acquisition and processing of approximately 2,600 kilometres of new 2D seismic and 24,000-square kilometres of gravity gradiometry.

The seismic will cover the TAGI and Paleozoic horizons across the Tendrara and Meridja areas.

"We are delighted to introduce Schlumberger into Meridja and the relinquished areas whilst also securing a full carry on the forthcoming seismic programme,” said chief executive James Parsons.

“The extension of the field management agreement will further deepen our strategic relationship with Schlumberger, who share the company's view of our eastern Morocco potential and frees up cash to allow us to accelerate our exploration of the region."

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