Sound Energy, the Morocco-focused upstream gas company, has signed a deal with Schlumberger Holdings II Limited to acquire the entire issued share capital of Schlumberger Silk Route Services Limited (SSRS)
Acquisition highlights:
The Group will have increased participating interests in the Anoual and Greater Tendrara exploration permits in eastern Morocco (Exploration Permits) by 27.5% to 75%, together with full control over its 75% participating interest in the Tendrara Concession.
Accretive acquisition on highly attractive terms
Positions Sound Energy to generate enhanced returns, cashflow and value as it moves forward the phased development of the TE-5 Horst
Significantly enhances discovered and undiscovered resource position
Increased participating interest to 75% will not impact the planned phased development strategy in East Morocco and underlines Sound Energy's position as a leading gas developer in country
Sound Energy will remain fully funded for its increased 75% working interest of planned phase 1 Tendrara Concession capital investments required until first gas, subject to finalising funding arrangements previously announced with Afriquia Gaz, its strategic partner and a major participant in the Moroccan gas industry
In consideration for the acquisition, the Group shall make an initial payment of US$1 to the seller in cash on completion and may make future payments to the Seller pursuant to a Profit Sharing Deed (PSD).
In the event of a cash disposal by the company of part or the whole of the SSRS's interest in the Exploration Permits on or before 28 February 2023, the Seller would be entitled to receive from Sound Energy 27.5% of the net cash proceeds related to the disposal of the SSRS Permit Interest, rising to 55% of proceeds related to the SSRS Permit Interest in the event of such a disposal occurring prior to 31 December 2021.
Upon completion of the acquisition, Sound Energy will grant to the Seller a share charge over 100% of the share capital of Sound Energy Morocco East Limited, the company's wholly owned subsidiary, in connection with the PSD and the Exploration Permit Disposal Right.
