Continental Focus, International Reach

Sound Energy and PetroMaroc Renegotiate

Monday, September 26, 2016

Sound Energy and PetroMaroc have renegotiated the terms of Sound’s acquisition of a 50% operated interest in the three onshore gas permits that make up the Sidi Moktar Licenses in Morocco. The company’s had entered into a binding agreement in March, however since that date a number of developments have taken place to impact the agreement, including Sound’s share price.

According to Sound the two parties wish to ensure that their respective interests are protected in a reasonable and fair manner. Toward this aim the pair have entered into a revised binding agreement under which any proceeds from a sale (in whole or in part) of the 21,258,008 new Sound Energy ordinary shares to be issued to PetroMaroc as consideration on completion of Sound Energy’s acquisition of the Sidi Moktar will be shared between Sound Energy and PetroMaroc as follows: PetroMaroc will receive all proceeds from sale(s) up to 50 pence per Consideration Share and sale proceeds in excess of 50 pence per Consideration Share will be shared equally between PetroMaroc and Sound Energy.

In addition, the long stop date for completion of the acquisition has been extended to December 31, or such later date as is necessary to satisfy the remaining conditions precedent.

Sound Energy and PetroMaroc will continue to work together collaboratively to ensure the smooth transition of the licenses.


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