Sound Energy PLC’s (LON:SOU) new well on the Tendrara project, onshore Morocco, is now positioned just above its target.
The company, in a statement, said it had drilled the well down to the third and final casing point at a measured depth of 2,475 metres. Casing work has now begun.
Drilling will resume thereafter just 50 metres above the targeted TAGI reservoir.
Tendrara is a potentially significant play for Sound with current resource estimates suggesting 310.5Bcf (51.8MMboe) recoverable gross contingent resources and 145.8MMboe of prospective resources. The company has a 55% stake in the project.
Sound Energy separately released financial results, for the twelve months to December 31, which showed the company ended the year with £15.2mln of cash.
It said that 2016 would represent ‘a period of high activity’ and highlighted that it would continue to operate with a ‘low cost but high quality philosophy’.
Gas production - coming from the Rapagnano gas field - amounted to 125mln cubic feet during the period, which equates to 340,000 cubic feet per day. Post year-end, the company achieved ‘first gas’ at the Nervesa field in February, though the company now anticipates some remedial work at the Italian project.
James Parsons, Sound Energy chief executive, said: "Despite the challenging sector backdrop and a disappointing result so far at Nervesa, Sound Energy's high quality partnerships, significant cash balance and strong management team position us well for continued counter-cyclical growth.
“We move into a very busy 2016 in a very robust position, looking to generate value through the drill bit and pursuing selective opportunities to complement our portfolio.
“We are now just a few weeks away from the result at our first strategic play."
Revenue for 2015 amounted to £900,000. The company reported a £18.3mln loss from continuing operations in 2015, compared with £4.9mln in the preceding year. The loss included almost £12mln of write-offs and impairments.