Sound Energy, Schlumberger sign Tendrara deal

Morocco

RABAT, December 29, 2015 – UK exploration company Sound Energy announced on Tuesday that it had signed a field management agreement with American oilfield services giant Schlumberger for its Tendrara licence in Morocco.

Under the contract, Schlumberger will provide technical services, equipment and personnel to Sound Energy, which operates the licence. The services provider will also fund 80% of the capital expenditure for the first appraisal well and 75% of the second and third wells. In return, Sound Energy will grant Schlumberger half of its interest in the net profits from the field.

“This transaction significantly reduces our financial exposure to the drilling programme while maximising the potential upside relating to drilling and development success. The involvement of Schlumberger in this project also helps de-risk the asset,” Sound Energy CEO James Parsons said in a company statement.

The Tendrara licence covers 14,500 sq.km and is home to two test wells that yielded flow rates of 155,700 cu.m (5.5 mcf) of gas per day and 42,500 cu.m (1.5 mcf) per day. Sound Energy holds a 55% working interest.