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Sound Energy has this morning announced that it has entered into a Field Management Agreement with Schlumberger with regard to the Tendrara licence onshore Morocco. In the agreement SLB provides integrated technical services, equipment and personnel and will be granted an upside linked to production performance. SLB are also funding a significant portion of the capex on the first three Tendrara appraisal wells. (as previously announced, 80%,75%,75%)
This is an unusually good carry for SOU and of course with SLB on the team sheet gives significant technical de-risking. In addition it reduces Sound’s financial exposure to the drilling programme, they part with 37.5% whilst maximising a good deal of potential upside. Overall this is very positive for SOU shareholders, and as management say in the statement, the company hopes to become one of the leading Mediterranean and North African gas companies, this is another step in that direction for the company.