PetroMaroc Corp. plc has announced that it has signed a binding sale and purchase agreement (SPA) with Sound Energy plc on the Sidi Moktar Licences, located in Morocco.
Pursuant to the agreement, Sound Energy will acquire PetroMaroc's 50% working interest in the Sidi Moktar Licenses, in consideration for (i) issuance to PetroMaroc of 21,258,008 ordinary shares in the capital of Sound Energy; and (ii) granting to PetroMaroc of (a) a 10% net profit interest in any future cash flows from the Kechoula structure within the Sidi Moktar Licences; and (b) a 5% net profit interest in any future cash flows from structures within the Sidi Moktar Licences other than the Kechoula structure.
Completion of the transaction is subject to a number of conditions.
D. Campbell Deacon, PetroMaroc's Chief Executive Officer, commented: "This transaction creates a strong relationship between PetroMaroc and Sound Energy whereby both parties are incentivized to develop the Sidi Moktar licence, and PetroMaroc is positioned to leverage off Sound Energy's operating capability in country and balance sheet whilst retaining material upside. We look forward to the near-term testing of Kechoula."
Edited from press release by Angharad Lock