Sound Energy PLC (LON:SOU) has secured a new eight-year petroleum agreement giving it rights to the Sidi Moktar project area, onshore Morocco.
The new project area, to be referred to as ‘Sidi Moktar Onshore’, covers a 4,499 square kilometres including the Sidi Moktar Nord, Sud and Ouest permit areas.
READ: Sound Energy reveals plans for a busy year in Morocco
It confirms Sound Energy’s 75% stake in the project, and details new minimum work commitments – which would see a new seismic programme and a well test (at Koba-1) during the first 30-month licence period.
"Sidi Moktar represents an exciting second leg to our Moroccan portfolio, following on from Sound Energy's success at Tendrara,” said James Parsons, Sound chief executive.
“The company is actively pursuing and remains committed to the development and expansion of its Moroccan portfolio."
READ: Sound Energy confirms plans for three-well Morocco drill programme
In November, Sound revealed an assessment of the Sidi Moktar project, where it has 28 mapped exploration leads in a variety of plays.
The project area has some 8.9 trillion cubic feet of exploration potential (according to the ‘best’ case estimate) and it is already host to a discovery.
Last summer, Sound successfully re-entered the Koba-1 well at Sidi Moktar and confirmed an interval in the Argovian reservoir. The well awaits testing, and could thereafter be put into production.