Sound Energy PLC (LON:SOU) has revealed the detailed results of the Tendrara-8 well in Morocco.
The company last week told investors that it had completed the well, and that it had encountered evidence of gas.
Today, it confirmed the presence of gas in two sequences, Westphalian sands (from a depth of 2,762 metres) and the TAGI reservoir sands (from 2,642 metres).
The TE-8 well was a material step out, some 12 kilometres, from the main Tendrara operations to date.
So the result means that Sound has confirmed a significant extension of the Tendrara field.
"TE-8 is a highly significant well for the company as we seek to derisk our transformational Eastern Morocco position,” said chief executive James Parsons.
Sound explained, however, that the encountered TAGI reservoir was not of the same high quality as recent wells – the reservoir is described as ‘tight’ and would require mechanical stimulation for production.
A 'very significant' reservoir across Tendrara and Meridija projects
Crucially, Sound said the presence of gas in TAGI reservoirs is consistent with a very significant single gas column across Tendrara and Meridija with a continuous extended structure. The company now plans to validate this conclusion with a re-entry and test of the original Tendrara-1 discovery well (which was drilled in 1966).
The company highlighted that the TE-8 results represent a material derisking of the substantial gas resources estimated for the project, which are set between 3-10 trillion cubic feet.
Parsons added: “Sound Energy's first two wells at Tendrara unlocked the TAGI play.
“TE-8 has now established that the primary hydrocarbon system proven in Algeria extends into the more favourable Moroccan licence and fiscal regime.
“I believe therefore that TE-8 will prove to be the Paleozoic play-opener in Morocco.
“I am also pleased to confirm TAGI sands some 12 Km away from our previous discovery, which, although lower quality at this specific location, is expected to materially uplift our discovered volumes.”
Operations will continue on TE-8 to take samples before suspending it for future programmes which may potentially include a stimulation and test of either this well or a sidetrack.