PetroMaroc Corporation plc is an independent oil and gas company focused on its significant land position in Morocco. The Company holds a 50 percent operated interest in the Sidi Moktar licence area covering 2,683 square kilometres and is working closely with Morocco’s National Office of Hydrocarbons and Mines (ONHYM) as a committed long-term partner to unlock the hydrocarbon potential of the region. Morocco offers a politically stable environment and provides favourable fiscal terms for energy producers. PetroMaroc is a public company and its common shares are listed on the TSX Venture Exchange under the symbol PMA.
History in Morocco
PetroMaroc entered Morocco in 2007 with the acquisition of minority interests in two permits in the Tarfaya and Zag areas in southern Morocco. Subsequently, the Company acquired interests in two offshore blocks, Sidi Moussa and Foum Draa. In 2011, PetroMaroc entered into a farmout agreement in the Sidi Moktar exploration licence with Maghreb Petroleum Exploration (MPE) to earn a 50 percent working interest in some 2,683 square kilometres in the Essaouira Basin.
PetroMaroc invested US$35 million in the Sidi Moktar exploration licence on exploration, composed of geological, geophysical, drilling and evaluation work resulting in the potential discovery of significant quantities of natural gas in the Kechoula structure which covers more than 50 square kilometres. The Company, as operator, drilled two exploration wells (Q4 2013, Q2 2014) which confirmed the commercial resource potential of this region.
In March 2016, the Company announced the signature of a binding sale and purchase agreement with Sound Energy plc (“Sound Energy”), where, pursuant to the sale & purchase 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 precedent, including Ministerial approvals in Morocco and a final approval of the TSX-V Venture Exchange. Upon receipt of ministerial approvals in Morocco, the residual US$1.8 million of the Sidi Moktar Bank Guarantee restricted cash, which is currently held in escrow, will be released to the Company. Upon closing of the Sound Energy Transaction, the 21,258,008 shares in the capital of Sound Energy, which will be held in escrow, will be allocated to the Company.