PetroMaroc Corporation plc is an independent oil and gas exploration company. PetroMaroc holds a substantial share position in Sound Energy plc, and net profit interests in the Sidi Moktar licence (onshore Morocco), as a committed long-term partner to unlock the hydrocarbon potential of the Essaouira region. 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, PetroMaroc announced the signature of a binding sale and purchase agreement with AIM listed Sound Energy plc (“Sound Energy”), which sale and purchase agreement completed in January 2017. Pursuant to the sale and purchase agreement, Sound Energy acquired PetroMaroc’s 50% working interest in the Sidi Moktar Licences in consideration for (i) issuing to PetroMaroc 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.
In July 2017 the Company announced that following the successful test of the Koba well in the upper Argovian section where natural gas was produced and flared, Sound Energy has temporarily suspended the Koba well to address H2S safety issues. An extended test program is expected to be complete by the end of 2017 to delineate the commercial significance of the upper zones. Additional seismic will be undertaken to further delineate the area in question. The deeper Jurassic and Triassic formations remain significant objectives and will be evaluated after a long-term program is formulated for the Koba and Kamar wells and the remainder of the Kechoula structure.