Sound Energy PLC (LON:SOU) has told investors that the gas discovered in the Badile exploration well is likely to be “sub-commercial”.
In a stock market statement, the company reported that the well was drilled down to a depth of 4,472 metres, with further significant gas shows observed along with water influx and losses of mud into what are believed to be fractures in the formation.
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Sound’s analysis suggests that a 12 metre gas column was encountered in the Upper Conchodon reservoir, below 4,375 metres, beneath which is believed to be a gas/water transition zone, the company added.
In order to verify this analysis, the company will now run a limited logging programme and that is confirmed, then the well will be plugged and abandoned.
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“The likely sub-commercial volumes at Badile are of course a disappointment,” said James Parsons, Sound Energy chief executive.
“Our focus now returns to our more material Eastern Moroccan position, where the seismic acquisition has begun and we are positioning for further drilling in Q4 of this year."
In reaction to the disappointment, in afternoon trading, Sound Energy shares were 26.6%, or 20.5p lower at 56.5p.
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