Sound Oil in talks to buy stake in Mahgreb's subsidiary

Oil and gas group Sound Oil has entered an agreement with Mahgreb Petroleum Exploration.

Under the terms of the deal, Sound will have a two-month period of exclusivity to negotiate an agreement to acquire one of Mahgreb’s subsidiaries, which owns a 25% stake in the Sidi Moktar licence onshore Morocco.

The London-listed group said it will start due diligence on the acquisition in the short term future and will make further announcements in due course.

Sound Oil shares were up 0.46% to 16.45p at 1516 BST on Monday.