Sound Energy PLC (LON:SOU) has announced the signing of a new eight-year petroleum agreement which pulls together the Tendrara and Matarka exploration areas.
It spans some 14,500 square kilometres surrounding the Tendrara gas discovery. Sound will hold 47.5% of the area, alongside Schlumberger, which has 27.5% and the state’s ONHYM vehicle, which retains a 25% stake.
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This united Greater Tendrara is in addition to the Anoual petroleum agreement and the separate production concession for the Tendrara gas discovery.
"I am delighted to announce that we have contractually secured our rights on this potentially transformational acreage up to 2026,” said James Parsons, Sound chief executive.
“We look forward to the approval of our production concession and commencement of our exploration drilling programme in the near future."
The new agreement sets out exploration obligations, including two exploration wells during the first four year period (the planned TE-9 and TE-10 wells will fulfil this requirement), one additional exploration well will be required in each of the next two optional two-year periods.