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London-listed Sound Energy has signed an agreement with Calvalley Petroleum to secure funding for the Tendrara exploitation concession and Grand Tendrara exploitation permit in Morocco.
The agreement will provide $48 million funding of Sound Energy and Calvalley’s phase 2 equity-funded development costs for a partial divestment of a 40 percent working interest, the Morocco-focused upstream gas company said in a statement.
In addition, Calvalley will provide 100 percent funding of the TE-4 Horst well with a cap of $7 million, funding of 40 percent share of phase 1 costs, including approximately $8 million in back costs, and advancement to Sound Energy of additional phase 1 and phase 2 costs.
Calvalley Petroleum is an oil and gas company operating in North Africa and the Middle East.
“We have entered into exclusivity and a term sheet with Calvalley, who have operations in the Middle East and are supported by a very large conglomerate,” said Executive Chairman Graham Lyon.
“The companies will now work towards signing definitive transaction documentation, which upon completion will enable the parties together to jointly progress to the final investment decision,” he added.
(Writing by P Deol; Editing by Anoop Menon)
