Sound Energy agrees field management deal with Schlumberger

Mediterranean-focused oil and gas company Sound Energy has entered into a field management agreement with an affiliate of Schlumberger Oilfield Holdings in relation to the Tendrara licence onshore Morocco.

Under the terms of the agreement, Schlumberger will provide integrated technical services, equipment and personnel to Sound, which is the operator of the licence.

Schlumberger will fund a significant proportion of the capital expenditure on the first three Tendrara appraisal wells, and of the development of the licence area thereafter.

In addition, Schlumberger will be granted an upside linked to production performance.

Chief executive James Parsons said: "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 and further supports the quality of our technical work."

At 1408 GMT, Sound shares were up 3.5% to 15p.