Sound Energy PLC’s (LON:SOU) profile has been further boosted with the share’s inclusion into the MSCI Global Small Cap Indexes.
It has been one of 2016’s standout small cap stocks, up 350% in the year to date, driven by the success of gas wells in Morocco.
Sound Energy’s AIM quoted shares will be included in the MSCI United Kingdom Small Cap Index with effect from November 30.
Sound Energy’s breakthrough success in Morocco
The breakthrough share price performance has been triggered by success at the undeveloped Tendrara gas field in Morocco, where two new wells have redefined the project pointing to a significant gas resource.
Results from the most recent Tendrara well, released last week, showed gas flow rates were significantly better than prior estimates.
A total of 8.8mln standard cubic feet a day was produced from just 28% of the gross reservoir interval without the need for stimulation. The plan now is to complete the planned mechanical stimulation and well test of the entire horizontal section.
Flow rates from this process are expected in the middle of the month.
“Thereafter the company will initiate the planned extended well test to confirm production sustainability and to aid comprehensive field development planning,” Sound told investors.
TE-7, as the company’s second well is called, was drilled to just under 3,500 metres. It is contact with the TAGI reservoir which produces the gas for 837 metres, 700 of those run horizontal.
The plan is to establish not just how prolific the well might be, but just how to efficiently drill wells on Tendrara for production.