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Energy

Sound Energy investors can start looking forward to new exploration catalysts

Seismic exploration equipment has arrived in Morocco ahead of the group's next programmes to follow up the success at the Tendrara field

Sound Energy PLC (LON:SOU) investors can start looking forward to new catalysts at the group’s Moroccan operations, as the company is now gearing up for new programmes.

The explorer, via Twitter, told investors that equipment for a planned seismic exploration campaign has now arrived in the country.

In July, Sound detailed its exploration plans for Morocco with the intention of following up the breakthrough successes at the Tendrara field, where a series of wells unearthed a significant gas project.

Sound Energy confirms vibe trucks and seismic equipment have arrived in Morocco. pic.twitter.com/4OPLLPxjAj

— Sound Energy (@soundenergyplc) August 15, 2017

The company recently expanded its footprint in the areas around Tendrara and the initial programmes will focus on geophysical surveying and seismic, ahead of future wells in the new exploration areas.

Sound is exploring these areas alongside partner Schlumberger.

The next exploration plans

The exploration programme will be split into three parcelled areas, likely starting with an area in the Tendrara/Anoual border area where the partners want to better define structural leads.

Subsequently, once all seismic is complete, the company intends to upgrade exploration prospects into its inventory, which will be assessed further via a new competent persons report.

This will be part of a programme to advance the Tendrara resources ahead of a final investment decision for the anticipated Tendrara development project.

In one area, known as Anoual, the AIM-quoted company will retain 47.5% of the asset while Schlumberger will have 27.5%. During an initial three-year period, the company will be required to carry out an FTG-aerogradiometry programme, plus acquire 600 kilometres of 2D seismic and 150 square kilometres of 3D seismic.

Meanwhile, in another area which is known as Makarka, the company will have an initial one-year reconnaissance licence and it will have to deliver an FTG survey. After that the group will have the right to apply for a longer exploration licence.

At Tendrara, Schlumberger is carrying out a number of geophysical surveys – including FTG, Scalar Gravity, Magnetics and LiDAR surveys. It will span some 24,000 square kilometres, and it will inform a basin scale model to evaluate Paleozoic and Triassic petroleum systems and the basin’s potential.

It is expected to be a three-month programme, with a full interpretation of the data anticipated in November.

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