Sound Energy PLC (LON:SOU) has told investors it has observed gas shows in the target reservoir whilst drilling the TE-8 well.
Drilling continues, and the group said it cannot provide further information – logging data, for example – until those operations are complete.
In a statement, ahead of the company’s general meeting later today, it revealed: “The company is pleased to confirm the presence of a TAGI sand sequence, commencing at a measured depth of 2,643 metres, and the presence of gas shows in the TAGI sands.
“The company cautions that logging will only occur after the completion of drilling operations and that gas shows, although a positive initial indication, should not be considered conclusive without further wireline logging and analysis.”
Sound will continue to drill the rest of the TAGI sequence and the Paleozoic.
The TE-8 well is 12km from the last well, and if it is a gas producer it will expand the lateral extent of the discovery.
Depending on results, it is envisaged that a further 30-day side-track may be drilled to prove a potentially deeper gas contact 900 metres to the north-west.
Sound, separately, gave a brief update on its other ongoing well programme.
The Badile exploration well, onshore Italy, has been drilled as far as the first casing point (set at 545 metres measured depth) and drilling continues towards the next casing point (anticipated at 1,400 metres).