Sound Energy, the transition energy company, is pleased, further to the update provided by the Company on 30 April 2024 and the continued discussions with Morocco's L'Office National des Hydrocarbures et des Mines ("ONHYM"), to provide a further update regarding further amendments to the Company's exploration permits at Anoual (the "Additional Amendments"), and entry into the optional Complementary Period under the exploration permits at Anoual.
The Anoual exploration permits cover 8,873 square kilometres in Eastern Morocco (the "Anoual Exploration Permits").
The Additional Amendments and entry into the Complementary Period remain subject to Moroccan Energy and Finance Ministerial approval.
Anoual Exploration Permits
The Company is pleased to report that ONHYM has now agreed, in place of the 18-month extension previously announced by the Company, on a longer 24-month extension to the initial period of the Anoual Exploration Permits, due to Force Majeure, ending on or about 7 January 2025.
Subject to Ministerial approval, the length of the Anoual Initial Period will therefore now be 7 years and 4 months, commencing on or about 8 September 2017 and ending on or about 7 January 2025. The amended work programme commitments for the Initial Period remain as announced on 30 April 2024 and have historically been fully satisfied.
In addition, in reflecting the extension to the Initial Period and subject to Ministerial approval, ONHYM has also agreed an extension to the expiry of the Anoual Complementary Period (of the existing 3 years and 8 months) is to conclude on or about 7 September 2028.
As a result of ONHYM's agreement to the further extension to the Initial Period and the extension to the conclusion of the Anoual Complementary Period, the Company confirms that it intends to progress the application to enter the Anoual Complementary Period on these revised terms.
Subject to Ministerial approval, the Anoual Exploration Permits now therefore have a total duration of 11 years and the remaining work commitments under the Anoual Exploration Permits, being the work commitment under the Anoual Complementary Period remain as announced by the Company on 30 April 2024.
The Company plans to fulfil the firm commitment for the Anoual Complementary Period with the drilling of the M5 exploration well detailed in the Company's announcement of 9 August 2022.
John Argent, Sound Energy's VP Geoscience, commented:
"Once again we thank our partner ONHYM and greatly appreciate their support and, as partners, we await the necessary Ministerial approvals allowing us to progress with the drilling of the M5 prospect. This is an opportunity to discover a much thicker TAGI reservoir section, across a very large structure in the centre of the Tendrara Basin, with the prize of unlocking significant potential gas volumes. We look forward to updating our stakeholders with the timing of these exciting drilling plans."