An AIM-quoted gas explorer is expected to announce multimillion-pound backing today to develop three new wells in the Sahara desert.
Schlumberger, which has been hammered by falling oil and gas prices and forced to cut 20,000 jobs, has agreed to pay for 80 per cent of Sound Energy’s first appraisal well at Tendrara in the Oriental region of Morocco, then 75 per cent of the cost of two further wells. Sound will pay the rest.
Based on similar projects, the wells are likely to cost more than £25 million. The companies will split further development costs should the wells prove to be commercially viable, and also will share any profits.
Sound Energy changed its name from Sound Oil in October and has reinvented itself as