“We are now moving forward with our exploration drilling programme with a view to unlock three of our largest plays,” said James Parsons, Sound Energy chief executive.
“Success at any one of these wells, together with the emerging seismic results, will likely be a step change in this new hydrocarbon province, and build significant new value for shareholders".
Sound plans a three-well exploration drilling programme which will address three independent and ‘high potential’ targets.
Drilling of the first well, TE-9, is slated to kick off in July. It will be drilled 25 kilometres North West of the TE-5 Horst location, to target the ‘A’ structure which has been estimated to have a mid-case of 700bn cubic feet of gas, with the upside estimate seeing 1.2 trillion cubic feet (TCF) of gas in place.
It is due to be followed by TE-10 in September. This location, 25 kilometres North East of TE-5, is estimated to host a larger 2.5 TCF target, where the upside estimate is stated at 5 TCF.
TE-11 would potentially be drilled in November, though the company has yet to finalise the location - the decision will be informed by the completed seismic data (Phase 2 and Phase 3).
Confidence boosted by survey findings
Parsons told investors that early results from the geophysical and geological studies underscore the company’s confidence in the Eastern Morocco exploration potential.
Sound’s confidence is lifted by initial new packages of data, coming from the Phase 1 seismic survey and an aerial survey of the exploration areas in the vicinity of the Tendrara 5 Horst location.
In this area the company has made an internal estimate that there could be between 9 and 31 trillion cubic feet (TCF) of gas.
It has received the final processed data from the aerial survey, which spanned 22,800 square kilometres, and it said a modelling exercise is due to be completed in February. At the same time a phased seismic programme is ongoing.
The first phase seismic survey comprised 341 kilometres of 2D across structures North West of TE-5, and it was completed during 2017. Phase 2 is positioned to the North East of the TE-5 location and is presently 50% complete. Sound plans to start the Phase 3, to the West of TE-5, seismic survey in April.
It is planned that all three phases of seismic will be complete by August, with final processed data subsequently due by October.
A new competent persons report, covering the Phase 1 area, is anticipated in March.
Advancing Tendrara discoveries towards production
Sound also highlighted on Wednesday that as it works to take its important gas discovery at Tendrara towards production, its development funding initiatives are at an advanced stage.
Last month, the company confirmed that it the TE-5 Horst location had 650bn cubic feet of gas in place, with the mid-case contingent resource set at 377bn cubic feet (the upside was estimated at 533 BCF while the low-case saw 197 BCF).
Accordingly, the company has established the economic gas potential of the discoveries at Tendrara.