Genel Energy says well-drilling obligation dropped from Sidi Moussa well in Morocco

Genel expects to shoot 3D seismic in 2018, but it is no longer obliged to drill a well.

Proactive Published 09/11/2017

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Genel Energy PLC (LON:GENL) told investors that Moroccan authorities have agreed to remove a well-drilling obligation from the Sidi Moussa licence.

The company had been required to drill the offshore well in order to keep the asset, however, new arrangements have been agreed for the licence.

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Now, Genel is able to shoot a 3D seismic survey at Sidi Moussa with the programme expected to start during 2018.

“The 3D seismic is expected to materially de-risk the prospectivity of the Sidi Moussa licence,” Genel said in a statement.

Additionally, the Moroccan government has also consented to an extension of the current phase of the licence until February 2020.