The exploration and development firm Sound Energy PLC (LON:SOU) said a drill rig will soon be on its way from its Tendrara licence in Morocco to start work on two wells at Sidi Moktar, its second gas asset in the country.
The company has also confirmed it will go it alone with the exploration of Sidi Moktar thanks to its strong financial position, rather than bringing in a partner.
It owns 75% of the 2,700-square kilometre area (the remainder is held by the state), host to two wells near a town called Kechoula.
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The wells targeted the Lower Liassic horizon and are host to a ‘mid-case’ 293 billion standard cubic feet of natural gas.
Sound believes it could tap into more significant accumulations within the lower-lying TAGI and Paleozoic formations.
Near-term potential
Previous work suggests licence area could be host to anywhere from one-trillion to nine-trillion cubic feet of gas – which would make Sidi Moktar a significant find.
Existing and new two-dimensional data will have to be processed as will drill results before the company can make its own assessment of what lies beneath the surface.
There is the potential for early commercialisation as the permit area is close to existing infrastructure, including the large-scale Moroccan state owned OCP phosphate plant.
Chief executive James Parsons said: "We are hugely excited about Sidi Moktar with the opportunity to demonstrate a commercial gas discovery, with potential near term production and significant deeper exploration potential in the pre-salt.
“Our financial strength enables us to avoid asset dilution therefore retaining a greater exposure to the very material deeper upside.”
Spinning plates
The plates are spinning at a rapid speed for chief executive Parsons and his team.
The company recently completed the drilling of the TE-8 well on the fringes of Tendrara.
It confirmed the presence of gas in two sequences: the 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.
Italy too
At the same time Sound is making headway in Italy, where its drilling programme at Badile, near Milan, had last week reached its third casing point at a measured depth of 2,614 metres.
The Morocco and Italy focused gas specialist’s next stop is the fourth casing point at 3,490 metres. The well will go down to a total depth of 4,445 metres.
The shares, up 320% in the past year, succumbed to a bout of mild profit-taking as they drifted 3.5% to 68.62p.
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