Morocco’s government has approved UK-based energy firm Sound Energy’s purchase of a majority stake in the Greater Tendrara natural gas concession though an eight-year agreement.

Sound Energy has acquired a 47.5 per cent stake in the Greater Tendrara area, which spans some 14,500 square kilometres. US energy services firm Schlumberger and Morocco’s state oil and gas firm ONHYM own 27.5 per cent and 25 per cent respectively.

The agreement until 2026 sets out three phases, with accompanying work commitments, Sound said in a disclosure to the London Stock Exchange on 16 October.

In the first four years, Sound and its partners will be required to drill at least two wells while the first two-year extension period will require one further well to be drilled and a second two-year extension period will require a fourth new well to be drilled.

Sound noted that the Greater Tendrara Petroleum Agreement unites the areas covered by the Tendrara petroleum agreement granted in April 2013 and the Matarka reconnaissance licence granted in July 2017.

In a meeting with investors in July, Sound Energy stated that gas flows at Tendrara were “already highly commercial” and above initial expectations: the flow rate at one well was 38,510 cubic metres a day from 5 metres of pay – placing commercial production within reach.

The company also expects to soon begin commercial production at its Sidi Mokhtar licence. The size of its finds in Morocco has led Sound Energy to shift its focus entirely towards exploration drilling in the country.