Sound Energy PLC (LON:SOU) has lifted the lid on how much gas it believes it has in Morocco, with the exploration potential measuring some 17 trillion cubic feet of gas across the Tendrara and Meridja permit areas.
That very substantial figure is an in-house number, and it is termed as the ‘mid case’ unrisked original gross gas in place estimate. It is not the amount of gas that Sound believes can be recovered.
The in-place gas estimates are in a range from 9 trillion cubic feet to an ‘upside case’ estimate of some 31 trillion cubic feet.
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Sound told investors that its estimates are supported by the mapping of its inventory of discoveries, exploration prospects and leads.
Meanwhile, based on data gathered for its Moroccan wells to date, drilled at Tendrara, the company has an estimate of between 300 and 500 billion cubic feet.
The company now plans further exploration activity in Morocco, including the use of additional seismic data as a precursor to more drilling. It said that the next phase of work will help substantiate the estimated multi-trillion cubic feet exploration potential.
Drilling is about to get underway on the TE-8 which aims to show that the gas reservoirs discovered to date actually span a much larger area, it will be a key step if proving up the upside case.
Sound intends to commission a new competent persons report (CPR), which will provide an independent assessment of the resources, once the TE-8 well has been completed.
The CPR will also be a precursor to Sound making a final investment decision on a possible development of the Tendrara gas field, a decision that’s anticipated for later in 2017.
“The 2017 Tendrara / Meridja work programme will therefore be focused on accelerating the exploration activity to unlock the ultimate potential of the Basin and advancing preparations to early first gas,” the company said in a statement.