Proactiveinvestors United Kingdom Sound Energy PLC https://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom Sound Energy PLC RSS feed en Sun, 21 Jul 2019 18:07:50 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[RNS press release - Issue of Equity and Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190716140214_14151530/ Tue, 16 Jul 2019 14:02:14 +0100 https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190716140214_14151530/ <![CDATA[RNS press release - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190628135404_14129525/ Fri, 28 Jun 2019 13:54:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190628135404_14129525/ <![CDATA[News - Sound Energy unveils US$3mln share placing alongside executive pay cut ]]> https://www.proactiveinvestors.co.uk/companies/news/222294/sound-energy-unveils-us3mln-share-placing-alongside-executive-pay-cut-222294.html Sound Energy PLC (LON:SOU) has announced plans to raise US$3mln alongside further cost cuts that will see executives’ pay drop.

Just under 24mln shares will be issued at 10p each, a modest discount to last night’s close.

The cash will be used to boost the firm’s financial base as it markets its eastern Morocco gas assets, a process that’s expected to be concluded before the end of the year.

On top of the economies announced on May 21, which were designed to reduce general and administrative expenses by 50%, Sound Energy said that from August 1 - and for a six-month period - executive base salaries will be cut by 29%.

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Tue, 18 Jun 2019 07:34:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/222294/sound-energy-unveils-us3mln-share-placing-alongside-executive-pay-cut-222294.html
<![CDATA[RNS press release - Placing, Cost Reduction Update and TVR ]]> https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190618070012_14114120/ Tue, 18 Jun 2019 07:00:12 +0100 https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190618070012_14114120/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190528162736_14089667/ Tue, 28 May 2019 16:27:36 +0100 https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190528162736_14089667/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190523143223_14085604/ Thu, 23 May 2019 14:32:23 +0100 https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190523143223_14085604/ <![CDATA[News - Sound Energy appoints Simon Davies as chairman for third time ]]> https://www.proactiveinvestors.co.uk/companies/news/220824/sound-energy-appoints-simon-davies-as-chairman-for-third-time-220824.html Sound Energy PLC (LON:SOU) announced that it has appointed Simon Davies as the Morocco-focused gas firm’s new independent non-executive chairman.

Davies joins the company with immediate effect, replacing Richard Liddell who intends to spend more time on his other business interests. Liddell, meanwhile, remains with Sound as its independent non-executive director.

READ: Sound Energy redraws plans for East Morocco after drilling results

The new chairman already has an association with the company - he is presently a 1.67% stakeholder in the company and he has had two prior stints as chairman (2014-16, 2005-10).

"I would like to thank Richard for his contribution and counsel during his tenure as chairman, and am delighted he will remain on the board as a non-executive director,” said James Parsons, Sound chief executive.

“I look forward to working with Simon again and know he will bring a huge amount to the Board at an important time for the company."

 

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Thu, 23 May 2019 07:26:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/220824/sound-energy-appoints-simon-davies-as-chairman-for-third-time-220824.html
<![CDATA[RNS press release - Board Changes ]]> https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190523070004_14084316/ Thu, 23 May 2019 07:00:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190523070004_14084316/ <![CDATA[RNS press release - Result of AGM ]]> https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190522144849_14083937/ Wed, 22 May 2019 14:48:49 +0100 https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190522144849_14083937/ <![CDATA[News - Sound Energy considers selling up, suspends remainder of well programme ]]> https://www.proactiveinvestors.co.uk/companies/news/220746/sound-energy-considers-selling-up-suspends-remainder-of-well-programme-220746.html Sound Energy PLC (LON:SOU) shares rallied somewhat on Wednesday - 7% higher at 11.56p - after the explorer revealed it may hoist the ‘for sale’ sign over its operations in Morocco.

The hangover from Tuesday’s well result remains evident, however. Yesterday, the explorer’s share dropped 40% to a low of around 10p, from 17.35p, after it revealed that the TE-10 well had failed to yield commercial volumes of gas in tests.

In a strategy update, the company told investors that the TE-10 well result, announced on Tuesday, “does not diminish Sound Energy's overall assessment of its Eastern Morocco acreage”.

READ: Sound Energy’s TE-10 discovery fails to achieve commercial flow rates

The explorer said that after five wells it sees a number of remaining high impact plays in the region – including the TE-5 discovery and production concession, as well as additional upside in TAGI and Palaeozoic plays across multiple leads and prospects.

Internally, the company estimates that the up to 20 trillion cubic feet of gas originally thought to be in place may be present across these exploration opportunities.

Nevertheless, Sound Energy said, it is now considering whether a sale of the East Morocco acreage would be a preferred option ahead of the final investment decision for the Tendrara TE-5 production area. It added that Rothschild & Co will support the company in this process.

In the meantime, the group has suspended plans to drill the TE-11 well – the third in the current programme – as it advances a marketing exercise.

"We are now approaching the final stages of Sound Energy's strategy to drill a bold exploration programme in Morocco and then explore options for early monetisation,” said James Parsons, Sound chief executive.

“Should the board receive the right price for the company's East Morocco acreage, our intention would be to return the net proceeds of any divestment to Sound Energy shareholders in the most efficient manner possible."

 -- Updates with share price --

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Wed, 22 May 2019 07:31:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/220746/sound-energy-considers-selling-up-suspends-remainder-of-well-programme-220746.html
<![CDATA[RNS press release - Strategic and Operational Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190522070002_14082642/ Wed, 22 May 2019 07:00:02 +0100 https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190522070002_14082642/ <![CDATA[News - Sound Energy’s TE-10 discovery fails to achieve commercial flow rates ]]> https://www.proactiveinvestors.co.uk/companies/news/220704/sound-energys-te-10-discovery-fails-to-achieve-commercial-flow-rates-220704.html Sound Energy PLC (LON:SOU) has said its TE-10 gas discovery in Eastern Morocco failed to achieve commercial flow rates following a stimulated well test.

The AIM-listed firm said it now intended to deploy a downhole gauge to monitor pressure in the well and demobilise the test equipment and crew from the site.

"Whilst clearly disappointed with the outcome of the recent well test at TE-10, the team and I are encouraged to have delivered gas to surface from another TAGI discovery and remain confident in the potential of our Eastern Morocco basin”, said James Parsons, Sound Energy’s chief executive.

“We have now completed the TAGI element of our current exploration programme and expect to update shortly on our forward looking strategy."

Following the conclusion of two exploration wells of its three well programme, Sound Energy said it had initiated a structural cost reduction programme aimed at materially reducing its ongoing operating expenditure. The firm said actions implemented as part of this programme were expected to result in a reduction in general and administrative expenses by over 50%.

The firm is also planning provide an update shortly on plans for the third well in the exploration programme, TE-11. The group said it had a cash balance of over US$14mln as of 14 May.

In mid-afternoon trading on Tuesday, Sound Energy shares were 43.5% lower at 9.8p.

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Tue, 21 May 2019 14:08:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/220704/sound-energys-te-10-discovery-fails-to-achieve-commercial-flow-rates-220704.html
<![CDATA[RNS press release - TE-10 Well Test Result and Exploration Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190521133536_14082176/ Tue, 21 May 2019 13:35:36 +0100 https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190521133536_14082176/ <![CDATA[RNS press release - Board Change ]]> https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190514070011_14072443/ Tue, 14 May 2019 07:00:11 +0100 https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190514070011_14072443/ <![CDATA[News - Sound Energy redraws plans for East Morocco after drilling results ]]> https://www.proactiveinvestors.co.uk/companies/news/219875/sound-energy-redraws-plans-for-east-morocco-after-drilling-results-219875.html  

What it does


The East Morocco operation comprises three areas – Tendrara, Greater Tendrara and the Anoual Permit.

In August 2018, Sound signed an eight-year petroleum agreement that pulled together the Tendrara and Matarka exploration areas into one licence and also brought long-term partner Schlumberger in with a direct interest.

Sound holds 47.5% of the area, alongside Schlumberger, which has a 27.5% direct interest and the state’s ONHYM vehicle, which retains a 25% stake.

This deal also united Greater Tendrara, the Anoual permit and TPE, the 25-year production concession for the Tendrara TE-5 gas discovery.

 

How is it doing

 

Greater Tendrara

Recent exploration here has already seen Sound hit substantial additional quantities of gas at Tendrara through the TE-6 and TE-7 wells.

A programme at the A1 prospect 19km from Tendrara was disappointing, however.

The TE-9 and TE-10 wells proved uncommercial with further exploration suspended while the company reviews its options.

Even so, Sound said it was confident about the potential of the Tendrara acreage

'After five wells it sees a number of remaining high impact plays in the region – including the TE-5 discovery and production concession, as well as additional upside in TAGI and Palaeozoic plays across multiple leads and prospects.'

Up to 20 trillion cubic feet of gas might still be present across these exploration opportunities.

Even so, Sound said a sale of the East Morocco acreage would be a preferred option ahead of the final investment decision for the TE-5 production area.

Sidi Moktar

If it finds a buyer for East Morocco, that will leave it with a 75% stake in the high potential Sidi Moktar exploration area on the west coast of the country.

It spans about 4.5 square kilometres, is close to existing infrastructure and best-case estimates suggest 9trn cubic feet of undiscovered gas.

At Sidi Moktar, Sound has said it wants a new partner to fund further exploration.

 

Financial

As of 14 May 2019, the company had a cash balance of over £11mln, while losses for 2018 were £11.75mln, a slight reduction on the previous year.

  What the boss says: James Parsons, chief executive

"Whilst clearly disappointed with the outcome of the recent well test at TE-10, the team and I are encouraged to have delivered gas to surface from another TAGI discovery and remain confident in the potential of our Eastern Morocco basin."  

  Inflexion points A buyer for East Morocco Final GSA for TE-5 Partner and exploration plans for Sidi Moktar ]]>
Wed, 08 May 2019 10:24:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/219875/sound-energy-redraws-plans-for-east-morocco-after-drilling-results-219875.html
<![CDATA[News - Sound Energy says initial TE-10 testing has been a success ]]> https://www.proactiveinvestors.co.uk/companies/news/219853/sound-energy-says-initial-te-10-testing-has-been-a-success-219853.html Sound Energy PLC (LON:SOU) has told investors that the initial phase of TE-10 well testing is now largely complete.

The initial phase, comprising unstimulated tests over a 153 metre zone, successfully flowed hydrocarbon gas to surface from within the well’s primary zone.

Next steps will see the well’s most prospective zones undergo mechanical stimulation, before being tested to determine their commercial merits.

READ: Sound Energy receives Moroccan gas sales proposal

Sound noted previous commentary that indicates a rate of 1.5mln to 2mln cubic feet of gas per day would be likely to be commercial, via a tie-back development connecting to the TE-5 Horst discovery.

Separately, Sound said that it has now been given environmental approval – with the award of an Environmental Impact assessment – for future drilling activity across a large 9,400 square kilometre area.

The area is located in the northern portion of the Greater Tendrara permit, and spans the majority of the Anoual permit, and, it is expected to give the company ‘maximum flexibility’ for the selection of future wells, including the pending TE-11 well.

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Wed, 08 May 2019 07:51:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/219853/sound-energy-says-initial-te-10-testing-has-been-a-success-219853.html
<![CDATA[RNS press release - Operational Update: Eastern Morocco ]]> https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190508070004_14065650/ Wed, 08 May 2019 07:00:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190508070004_14065650/ <![CDATA[News - Sound Energy receives gas sales proposal from Morocco’s state power firm ]]> https://www.proactiveinvestors.co.uk/companies/news/219443/sound-energy-receives-gas-sales-proposal-from-moroccos-state-power-firm-219443.html Sound Energy PLC (LON:SOU) shares rose on Wednesday after it told investors that talks are continuing over the gas sales agreement for the Tendrara project, and, an offer has now been received from the Moroccan government.

The non-binding offer envisages Tendrara’s gas being purchased by the Office National de l'Electricité et de l'Eau Potable (ONEE), Morocco’s state power firm.

READ: Sound Energy set to test TE-10 after key equipment arrives

It anticipates gas pricing from 2022 based on a structure that includes a variable element linked to the Brent oil price along with a fixed element to fully cover transportation costs (capped at US$12.2mln per year).

Sound provided an example, based on current Brent pricing at US$70-75 per barrel, which would see it receive between US$8.50 and US$9 per million British thermal units. It also assumed the pipeline fee to be US$1 per mln BTU.

Prior to 2022, the gas would be bought at prices in line with what the Moroccan state sells gas to ONEE.

The company said it will now continue negotiations to close out a binding gas sales agreement which would represent an important milestone in taking the TE-5 field into commercial production.

In afternoon trade, shares in Sound Energy were 4.5% higher at 18.50p.

 -- Adds share price --

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Wed, 01 May 2019 07:51:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/219443/sound-energy-receives-gas-sales-proposal-from-moroccos-state-power-firm-219443.html
<![CDATA[RNS press release - Tendrara Gas Sales Agreement Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190501070004_14058387/ Wed, 01 May 2019 07:00:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190501070004_14058387/ <![CDATA[News - Sound Energy set to test TE-10 as key equipment arrives on site ]]> https://www.proactiveinvestors.co.uk/companies/news/219229/sound-energy-set-to-test-te-10-as-key-equipment-arrives-on-site-219229.html Sound Energy PLC (LON:SOU) has told investors that a required piece of equipment has now arrived on site in Morocco, and, it will now advance testing programmes on the TE-10 well.

With the receipt of coiled tubing, the company will work to start a programme of unstimulated tests, followed by stimulated flow tests.

READ: Schlumberger takes direct stake in Sound’s Anoual permit

TE-10 is the second in a three well exploration programme in the Greater Tendrara area, onshore Morocco.

Earlier this month, Sound confirmed an important milestone for the Tendrara gas project.

Schlumberger converted its interest in the Anoual permits, part of the Tendrara exploration venture, into a direct stake in the project. As a result of the procedural milestone, Sound’s project equity stake amounts to 47.5% alongside Schlumberger with 27.5%, and Moroccan state vehicle ONHYM holding the remaining 25%.

It concludes the process across all the component parts of the Greater Tendrara project area, all of which is now 27.5% owned by Schlumberger. Meanwhile, the process is ongoing to convert Schlumberger’s interest in the TE-5 Horst discovery into a direct stake.

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Mon, 29 Apr 2019 07:35:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/219229/sound-energy-set-to-test-te-10-as-key-equipment-arrives-on-site-219229.html
<![CDATA[RNS press release - Further Update re TE-10: Rigless Well Testing ]]> https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190429070013_14054540/ Mon, 29 Apr 2019 07:00:13 +0100 https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190429070013_14054540/ <![CDATA[RNS press release - Annual Report and Notice of AGM ]]> https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190425154236_14052408/ Thu, 25 Apr 2019 15:42:36 +0100 https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190425154236_14052408/ <![CDATA[News - Sound Energy: Schlumberger takes direct stake in Anoual permit ]]> https://www.proactiveinvestors.co.uk/companies/news/218756/sound-energy-schlumberger-takes-direct-stake-in-anoual-permit-218756.html Sound Energy PLC (LON:SOU) has confirmed that its partner Schlumberger has now converted its interest in the Anoual permits, part of the Tendrara exploration venture, into a direct stake in the project.

As a result of the procedural milestone, Sound’s project equity stake amounts to 47.5% alongside Schlumberger with 27.5%, and Moroccan state vehicle ONHYM holding the remaining 25%.

READ: Sound Energy awaits start of TE-10 well testing programme

It concludes the process across all the component parts of the Greater Tendrara project area, all of which is now 27.5% owned by Schlumberger.

Meanwhile, the process is ongoing to convert Schlumberger’s interest in the TE-5 Horst discovery into a direct stake.

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Wed, 17 Apr 2019 08:22:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/218756/sound-energy-schlumberger-takes-direct-stake-in-anoual-permit-218756.html
<![CDATA[RNS press release - Anoual: Schlumberger Direct Licence Position ]]> https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190416162727_14043571/ Tue, 16 Apr 2019 16:27:27 +0100 https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190416162727_14043571/ <![CDATA[News - Sound Energy awaits start of TE-10 well testing programme ]]> https://www.proactiveinvestors.co.uk/companies/news/217827/sound-energy-awaits-start-of-te-10-well-testing-programme-217827.html Sound Energy PLC (LON:SOU) is looking forward to the start of testing at the TE-10, once certain equipment arrives from Tunisia.

The company said in a statement after Tuesday’s that TE-10 will undergo testing after a ‘rig-less re-entry’ to the well, following the receipt of coiled tubing which is on the way.

READ: Sound Energy says pressure data has boosted Tendrara development

It will then perforate the well prior to carrying out both unstimulated and stimulated well flow testing.

TE-10 is the second in a three well exploration programme in the Greater Tendrara area, onshore Morocco.

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Wed, 03 Apr 2019 07:21:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/217827/sound-energy-awaits-start-of-te-10-well-testing-programme-217827.html
<![CDATA[RNS press release - TE10: Rigless Well Testing Timing Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190402160326_14026062/ Tue, 02 Apr 2019 16:03:26 +0100 https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190402160326_14026062/ <![CDATA[RNS press release - TVR and Block Admission Interim Review ]]> https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190401100755_14023283/ Mon, 01 Apr 2019 10:07:55 +0100 https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190401100755_14023283/ <![CDATA[News - Sound Energy says well pressure data has boosted Tendrara development plan ]]> https://www.proactiveinvestors.co.uk/companies/news/217084/sound-energy-says-well-pressure-data-has-boosted-tendrara-development-plan-217084.html Sound Energy PLC (LON:SOU) has given investors additional technical insights with the release of information from pressure build-up analysis in the TE-7 well, onshore Morocco.

The trend observed in the well pressure data over time indicates that higher than previously estimated volumes of gas will be accessible from the well.

READ: Sound says it is “financially well positioned” for rest of 2019

Sound described a continuing increase in pressure towards the original reservoir pressure and the pressure build-up testing has now been extended.

Data recorded to date has led to an increase in Sound’s estimate of gas-originally-in-place (GOIP) connected to the well to at least 115bn cubic feet, up from a prior estimate of at least 40bn.

“The significant increase in the company's estimates of minimum GOIP connected to the TE-7 well provides support for the company's field development plan consisting of a number of horizontal stimulated production wells spaced to optimise recovery,” Sound said in a statement.

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Mon, 25 Mar 2019 07:33:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/217084/sound-energy-says-well-pressure-data-has-boosted-tendrara-development-plan-217084.html
<![CDATA[RNS press release - Tendrara: Update on TE-7 Connected Gas Volume ]]> https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190325070009_14013350/ Mon, 25 Mar 2019 07:00:09 +0000 https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190325070009_14013350/ <![CDATA[News - Sound Energy is “financially well positioned” as it looks forward to rest of 2019 ]]> https://www.proactiveinvestors.co.uk/companies/news/216911/sound-energy-is-financially-well-positioned-as-it-looks-forward-to-rest-of-2019-216911.html Sound Energy PLC (LON:SOU) told investors it is financially well positioned for the remainder of 2019, as it reported results for last year.

The explorer said that it ended December with £20.5mln of cash.

It invested some £12.4mln during 2018, with most of the funds spent on the TE-9 and TE-10 wells operations. In the year, there was a £12.2mln injection of funds raised by the issue of equity.

Some £4.1mln of exploration costs were reported, mainly related to TE-9 exploration well which did not encounter producible gas. TE-10 drilling did not begin until December.

Admin costs came in at £8.9mln, which was slightly higher than the year before.

Sound reported an £11.7mln loss from continuing operations. During the year it disposed of its Italian assets via two-legged transactions, the portfolio was sold to Coro Energy in a paper deal and subsequently Sound released the equity across its shareholders.

READ: Sound Energy continues ‘positive talks’ over gas sales deal

Attentions are now focussed on Morocco and the Tendara assets, which comprise both the field development in production concession area and upside in the exploration area.

Operational highlights for 2018 include securing the 25-year production concession for the existing Tendrara discoveries, the restart of exploration drilling, and the signing of heads of terms with a Spanish consortium in relation to infrastructure development.

Significantly, the company brought partner Schlumberger directly into Tendrara – with the field services major taking interests at a project level. Schlumberger led and paid for a US$27.2mln seismic programme, which began in August.

The unsuccessful TE-9 was followed by the drilling of TE-10, which got underway in December,  which subsequently observed a potential gross reservoir interval across around 100 metres and further operations are expected to see both unstimulated and stimulated well testing during the current financial year.

For the field development project, efforts are currently focussed on securing a gas sales agreement before the project advances.

“Positive discussions have continued to progress the gas sales agreement (GSA) for offtake which forms a key building block to support project sanction,” Sound said in the results statement.

“The company expects to sign binding GSA terms shortly.”

Elsewhere in Morocco, the company continues to work on the Sidi Moktar project. In June it secured a new eight-year licence and the present focus is on the completion of an environmental impact assessment for a proposed seismic exploration programme.

Sound is assessing whether to farm-down its stake in the project, to bring in a part to support future work programmes.

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Thu, 21 Mar 2019 07:36:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/216911/sound-energy-is-financially-well-positioned-as-it-looks-forward-to-rest-of-2019-216911.html
<![CDATA[RNS press release - Final Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190321070006_14009938/ Thu, 21 Mar 2019 07:00:06 +0000 https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190321070006_14009938/ <![CDATA[News - Sound Energy says positive talks continue for Tendrara gas sales deal ]]> https://www.proactiveinvestors.co.uk/companies/news/215972/sound-energy-says-positive-talks-continue-for-tendrara-gas-sales-deal-215972.html Sound Energy PLC (LON:SOU) has told investors that it has continued positive discussions with the Moroccan authorities over a gas sales agreement that would unlock the Tendrara project for production.

The explorer, in a statement, revealed that Morocco's Office National de l'Electricité et de l'Eau Potable (ONEE) and the Moroccan Minister of Energy have confirmed the intention that, once agreed, the GSA will cover all of the gas to be produced from the recently awarded Tendrara production concession.

READ: Sound Energy upgrades view of TE-10 gas well ahead of testing

It described the pending GSA as “a critical next step” required to bring the field development project to a final investment decision.

Sound said: “The Tendrara development has the potential to offer Morocco both a new strategic domestic gas supply source, thereby reducing its dependency on Algerian imports, and significant new gas transportation infrastructure in the East of Morocco connected to the Gazoduc Maghreb Europe pipeline.”

The Tendrara project’s first gas is expected after around two years, with production volumes projected to be around 60mln cubic feet per day over a 10-year period.

Tendrara’s production concession is just one portion of the Greater Tendrara area which spans some 14,500 square kilometres surrounding the Tendrara gas discovery.

Sound holds 47.5% of the area, alongside Schlumberger, which has 27.5% and the state’s ONHYM vehicle, which retains a 25% stake.

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Thu, 07 Mar 2019 07:13:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/215972/sound-energy-says-positive-talks-continue-for-tendrara-gas-sales-deal-215972.html
<![CDATA[RNS press release - Update re Gas Sales Agreement ]]> https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190307070005_13993104/ Thu, 07 Mar 2019 07:00:05 +0000 https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190307070005_13993104/ <![CDATA[RNS press release - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190228143021_13985792/ Thu, 28 Feb 2019 14:30:21 +0000 https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190228143021_13985792/ <![CDATA[News - Sound Energy upgrades view of TE-10 gas well ahead of next month’s test programme ]]> https://www.proactiveinvestors.co.uk/companies/news/214792/sound-energy-upgrades-view-of-te-10-gas-well-ahead-of-next-months-test-programme-214792.html Sound Energy PLC (LON:SOU) has announced that the TE-10 well, in Morocco, has higher exposure to net gas pay than previously estimated and, at the same time, has detailed the well is host to a significant amount of gas resources.

The company, in a statement, revealed that it had commissioned independent consultant ERCE which - using core samples and well log data – provide the basis of a new estimate that the TE-10 has 15.4 metres of net pay, up from 10.5 metres.

In the mid-case estimate, the well is viewed as having 13.1 metres of pay, while the low-case estimate put pay at 9.5 metres.

READ: Sound Energy Morocco update sketches in interesting detail

Sound also estimates that the North East Lakbir structural-stratigraphic closure, which is a feature in TE-10, has some 1.43 trillion cubic feet of gas originally in place (GOIP).

The upside case is stated at 3.4 trillion cubic feet, while the low case is made at 584bn cubic feet.

It cautioned, however, that a successful well test is always required to confirm reservoir deliverability and commerciality.

Plans are already in place for a test programme, due to get underway next month.

"We set out last year to deliver an ambitious three well exploration programme to further unlock the Tendrara Basin and our second well (TE-10) is a discovery,” said James Parsons, Sound Energy chief executive.

“Following our initial post drill technical analysis, we are delighted to materially upgrade our net pay and provide confirmation of the multi Tcf potential of this well. 

“We now look forward to addressing reservoir deliverability and hence commerciality with the well test."

The test programme will start in mid-March with the initial tests measuring a series of unstimulated flow rates from multiple intervals to establish the presence of deepest moveable gas.

Subsequently, the plan is to conduct a number of stimulated production flow tests in late March.

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Mon, 18 Feb 2019 07:56:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/214792/sound-energy-upgrades-view-of-te-10-gas-well-ahead-of-next-months-test-programme-214792.html
<![CDATA[RNS press release - TE-10: Net Pay Upgrade and Volume Estimates ]]> https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190218070007_13971942/ Mon, 18 Feb 2019 07:00:07 +0000 https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190218070007_13971942/ <![CDATA[RNS press release - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190131150001_13954057/ Thu, 31 Jan 2019 15:00:01 +0000 https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190131150001_13954057/ <![CDATA[News - Sound Energy rises as Morocco update sketches in some interesting detail ]]> https://www.proactiveinvestors.co.uk/companies/news/213392/sound-energy-rises-as-morocco-update-sketches-in-some-interesting-detail-213392.html Sound Energy PLC (LON:SOU) shares gained on Monday as the explorer sketched in some interesting detail drawn from its TE-10 well in the Tendrara area of Morocco.

It confirmed Monday it is likely to “revise up” the net pay estimate of sands found under the main TAGI play, which currently stands at 10.5 metres. This follows a closer analysis of this gas-bearing horizon.

READ: Sound Energy shares soar on latest Tendrara well success

At the same time Sound said its testing programme for TE-10 will include well stimulation, with the kit required already on its way from Libya and Tunisia.

The first stage of the testing programme will begin early next month, assessing a cross-section from 1,899 metres measured depth to 2,070 metres.

Sound’s contractors will conduct a series of flow tests at multiple intervals “to establish the presence of deepest moveable gas, and reduce the range of uncertainty on gas resource volumes”.

The plan, once the stimulation equipment has arrived, is to mechanically stimulate the most prospective reservoir zones in a series of production flow tests. This is expected to take at least a month.

The company said that based on the current assessment of the reservoir section, a flow rate of 1.5-2mln standard cubic feet of gas per day is likely to be commercial.

“This commerciality threshold would be materially lower if the stratigraphic upside materialises as the TE-10 development would, in that case, be a standalone development,” it added.

Largest target 

For Sound, the North East Lakbir stratigraphic trap is the most material of TE-10's two targets.

It had pre-drill mid case potential of a gross 2.7 trillion cubic feet of gas originally in place and a high-end estimate of 4.5Tcf.

The company said seismic test and modelling to provide an updated resource estimate should be completed by mid-February.

It has previously confirmed that the gas shows observed during drilling extended below the currently mapped structural closure, suggesting that the gas accumulation may extend further than previously thought.

Stratigraphic trap

A stratigraphic trap is effectively a sealed geologic container capable of retaining hydrocarbons.

It is formed by changes in rock type or pinch-outs, unconformities, or sedimentary features such as reefs.

In the same update, Sound said it and its partners continued to make “good progress” with the commercialisation of the TE-5 Horst discover, which is being developed as a 66mln cubic feet a day operation.

Finally, a well location has been selected for TE-11, subject to partner approvals, which will target a Palaeozoic high in the northern area of the Greater Tendrara licence.

FEED end-point eyed

In a note to clients, analysts at SPAngel commented: “While the news of the drilling and exploration/appraisal programme is positive, the news that will catch the eye is on the stage of the FEED programme. When you draw to the end of the FEED stage, the point at which the engineering team can confidently outline its expectations for timing on commissioning starts to form.”

They added; “While the exact date will not be confidently known until it is over 50% complete, we believe that point is fast approaching. Once known, so too will be the estimate for the quantum of cash that Sound must also fund, which will then present investors with the outline and route to value for the Company.”

In mid-morning trading, Sound Energy shares were 6.9% higher at 26.22p.

 -- Adds share price --

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Mon, 28 Jan 2019 08:08:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/213392/sound-energy-rises-as-morocco-update-sketches-in-some-interesting-detail-213392.html
<![CDATA[RNS press release - Eastern Morocco Operations Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190128070006_13947941/ Mon, 28 Jan 2019 07:00:06 +0000 https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190128070006_13947941/ <![CDATA[RNS press release - Second Price Monitoring Extn ]]> https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190125164046_13947737/ Fri, 25 Jan 2019 16:40:46 +0000 https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190125164046_13947737/ <![CDATA[RNS press release - Price Monitoring Extension ]]> https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190125163542_13947731/ Fri, 25 Jan 2019 16:35:42 +0000 https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190125163542_13947731/ <![CDATA[News - Sound Energy shares soar on latest Tendrara well success ]]> https://www.proactiveinvestors.co.uk/companies/news/212026/sound-energy-shares-soar-on-latest-tendrara-well-success-212026.html Sound Energy PLC (LON:SOU) shares jumped more than 20% after it confirmed discoveries in the TE-10 exploration well in the vicinity of the Tendrara gas project.

The company this morning announced it had completed the drilling of the TE-10 well which identified gas bearing sands.

In Monday morning’s deals, Sound rose 4.5p or 21.4% to change hands at 25.5p.

READ: Sound Energy has better luck with TE-10 well at Tendrara

The reservoirs were observed within and below the currently mapped TAGI structural closure which potentially de-risks upside in the North East Lakbir across the Tendrara project area, the company noted.

It added that the North East Lakbir stratigraphic trap was estimated, pre-drill, to have some 2.7 trillion cubic feet of gas originally in place in the mid-case (4.5 TCF in the upside, and 1.5 TCF in the low case).

The well, which was drilled to a total depth of 2,218 metres, additionally identified thin bedded net pay and a gas sample was recovered to surface.

In late December, the company previously announced preliminary results and logging from the well, indicating up to 10.5 metres of pay. It has subsequently conducted higher definition analysis of the results, and, it said that quantification of the well’s overall net pay is currently underway.

Moreover, the company highlighted the positive findings of its ongoing analysis.

Sound said: “The company can confirm that the gas shows observed extend below the currently mapped structural closure at approximately 1,958m measured depth.

“This suggests the gas accumulation may extend updip into the stratigraphic trap. Seismic interpretation and modelling are underway to assist with internal estimates of gas resources within the discovery.”

Sound is now advancing plans to conduct a well test, due to take place in 2019.

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Mon, 07 Jan 2019 07:48:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/212026/sound-energy-shares-soar-on-latest-tendrara-well-success-212026.html
<![CDATA[RNS press release - Eastern Morocco: Further TE-10 Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190107070003_13924978/ Mon, 07 Jan 2019 07:00:03 +0000 https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190107070003_13924978/ <![CDATA[RNS press release - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190102150002_13921377/ Wed, 02 Jan 2019 15:00:02 +0000 https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20190102150002_13921377/ <![CDATA[News - Sound Energy has better luck with TE-10 well at Tendrara ]]> https://www.proactiveinvestors.co.uk/companies/news/211740/sound-energy-has-better-luck-with-te-10-well-at-tendrara-211740.html Sound Energy PLC (LON:SOU) has announced positive initial results from the TE-10 well at the Tendrara project in eastern Morocco.

The AIM company said intermediate wireline logs had indicated the presence of gas-bearing sands in the TAGI.

Based on the preliminary interpretation of the data, Sound has estimated net pay of up to 10.5 metres and an average porosity of 8% – a similar porosity to previous productive wells in the firm’s existing discovery.

READ: Sound ​moves swiftly on to second well in Morocco

“These positive initial results underscore our confidence in the exploration potential across the broader basin,” said chief executive James Parsons.

“We will now finalise the logging, drill to TD [total depth] and then test the well to better understand the scale of the discovery and seek to confirm commercial flow rates.”

The news will be welcomed by investors after the disappointment of TE-9 – the first well in the programme – which was plugged and abandoned after it did not encounter producible gas.

The plan now is to finish drilling and then perform a well test, including possible mechanical stimulation.

Sound will also initiate seismic analysis to establish its internal estimated gas resources of the structural closure and the upside potential of the North East Lakbir stratigraphic trap. 

Groundworks for the drilling of TE-11, the third well in the programme, are expected to commence after the TE-10 well test.

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Thu, 27 Dec 2018 07:51:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/211740/sound-energy-has-better-luck-with-te-10-well-at-tendrara-211740.html
<![CDATA[RNS press release - Eastern Morocco: TE-10 Drilling Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20181227070009_13915788/ Thu, 27 Dec 2018 07:00:09 +0000 https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20181227070009_13915788/ <![CDATA[RNS press release - Change of Adviser following Acquisition ]]> https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20181212070004_13900181/ Wed, 12 Dec 2018 07:00:04 +0000 https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20181212070004_13900181/ <![CDATA[News - Sound Energy kicks off TE-10 exploration well ]]> https://www.proactiveinvestors.co.uk/companies/news/210745/sound-energy-kicks-off-te-10-exploration-well-210745.html Sound Energy PLC (LON:SOU) has now kicked off the drilling of the TE-10 well at the Tendrara project in eastern Morocco.

It is the second of a planned three well exploration programme at Tendrara, and, it is located around 25 kilometres away from Tendrara’s currently anticipated production area.

READ: Sound Energy’s drill programme moves swiftly on

The drilling programme is expected to run for 30 to 40 days, with the well drilled down to a depth of 2,200 metres.

TE-10 is targeting a material TAGI stratigraphic trap and a smaller TAGI structural closure, Sound told investors. It is part of a play with estimated volumes of 2.7 Tcf mid case gross gas originally in place (GOIP) – 4.5 Tcf GOIP gross upside case and a 1.5 Tcf GOIP gross low case

Last month, the first well in the current programme (TE-9) was plugged and abandoned after it did not encounter producible gas.

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Fri, 07 Dec 2018 07:27:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/210745/sound-energy-kicks-off-te-10-exploration-well-210745.html
<![CDATA[RNS press release - Eastern Morocco: Commencement of Drilling at TE-10 ]]> https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20181207070005_13895042/ Fri, 07 Dec 2018 07:00:05 +0000 https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20181207070005_13895042/ <![CDATA[RNS press release - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20181130134430_13887382/ Fri, 30 Nov 2018 13:44:30 +0000 https://www.proactiveinvestors.co.uk/companies/rns/927/LSE20181130134430_13887382/