Sound Energy receives ministerial approval for Morocco agreement

AIM-listed upstream gas firm Sound Energy has received ministerial approval of its new eight-year Greater Tendrara Petroleum Agreement.

The Moroccan focused outfit told investors that its petroleum agreement covering the Tendrara and Matarka areas had come into force on Tuesday after it was signed by L'Office National des Hydrocarbures et des Mines, the Moroccan State regulator for petroleum operations, and the Moroccan Energy and Finance Ministries.

Sound Energy's new agreement covered an area of roughly 14,500 square kilometres across eastern Morocco and unites the areas covered by the Tendrara petroleum agreement granted in April 2013 and the Matarka reconnaissance licence granted in July 2017.

Sound holds a 47.5% operated position in the Greater Tendrara petroleum agreement. The remaining 52.5% was split between Schlumberger and the Moroccan State regulator.

Sound Energy chief executive James Parsons, said: "I am delighted to announce receipt of approval from the Moroccan Energy and Finance Ministries for the Greater Tendrara petroleum agreement and that, as a result, the Greater Tendrara petroleum agreement has now become effective - securing Sound Energy's rights to this potentially transformational acreage up to 2026."

As of 0935 BST, Sound shares had picked up 1.85% to 37.38p.