Sound Energy PLC (LON:SOU) has received another show of faith after its boss pumped a further £30,000 of his own money into the gas explorer.
James Parsons, who has been at the helm of Sound for more than four years now, bought 44,500 shares at the market price of 67.37p.
That purchase takes Parsons’ holding just over 1.64mln shares, representing 0.25% of the firm.
Sound’s biggest asset is its Tendrara gas licence, onshore Morocco, although it does have a portfolio of assets in Italy, including Badile which has a net present value of over £400mln.
The team at Sound reckon Tendrara has between 300bn and 500bn cubic feet of gas in place based on work carried out so far.
Earlier this week, Sound confirmed it had retrieved memory gauges from its last hole, TE-7, which confirm “the reservoir pressure correlates with the gas gradient recorded at all previous wells on the structure”.
The next well, TE-8, is 12km away from TE-7 and will test the lateral extent of the gas accumulation.
Work is slated to start on TE-8 in February, and if Sound can successfully find gas at commercial rates here, then the estimate for Tendrara rockets up to 1.5trn cubic feet of gas in place.
As well as testing the TAGI reservoir, TE-8 will also tap the lower lying Palaeozoic horizons for the first time.
Shares were up 1% to 69.1p.