Proactive Investors - Run By Investors For Investors
Why invest in SOU?

Sound Energy reveals plans for a busy year in Morocco

“Success at any one of these wells ... will likely be a step change in this new hydrocarbon province."
oil and gas operations
Sound plans to drill 3 wells this year

Sound Energy PLC (LON:SOU) has laid out an exploration programme for 2018 that is set to deliver several potential value-adding catalysts.

A phased seismic programme is partially complete, and a new drill programme will start in July to test three big targets.

At the same time, Sound is working on development funding to take its recent successes into production.

“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.

View full SOU profile View Profile

Sound Energy PLC Timeline

Related Articles

Oil drums
March 08 2018
Hartleys has a 12-month share price target of $0.25 on the stock implying upside of nearly 100%.
oil and gas operations
January 24 2018
“While wildcat exploration is inherently high-risk, we see an attractive risk/reward in Eco,” the analyst said in a note
oil and gas operations
February 08 2018
“Success at any one of these wells ... will likely be a step change in this new hydrocarbon province."

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use