Sound Energy PLC (LON:SOU) has unveiled a new estimate of the Sidi Moktar exploration project onshore Morocco.
The explorer told investors it sees the potential for up to 11.2 trillion cubic feet of gas within a portfolio of targets – consultant Echo Geoscience Management Ltd (EG) has detailed 28 leads in a variety of play types.
READ: Sound Energy completes exploration survey across Eastern Morocco licences
EG’s 11.2 TCF number represents the "high case". The consultant’s ‘best case’ estimate sets the bar at 8.9 TCF, while the "low case" is for a still substantial 6.7 TCF of gas.
The consultant also noted that "much of the potential" lies in 11 leads, in pre-salt Triassic and Paleozic targets, where the individual leads could range between 200 billion cubic feet and 2.5 TCF.
Sound Energy highlighted that it expects to shortly sign a new eight-year exploration permit covering the Sidi Moktar area, and a new exploration programme will start with the reprocessing of existing seismic data, new seismic and other geological surveying ahead of new high impact exploration drilling.
READ: Sound Energy’s focus is now entirely on Morocco
In a statement, Sound said: “The company cautions that exploration in the oil and gas industry contains an element of risk and there can be no guarantee that its current estimates of volumes of gas originally in place will be substantiated.
“Notwithstanding the preliminary volumetric assessments of exploration potential across the Sidi Moktar Licences estimated by the EG Study, the company requires further exploration activity, including the acquisition of additional seismic and further drilling activities to substantiate the exploration potential and the potentially recoverable volumes.
By 2.25 pm, the shares were up 3.4%, or 1.74p, at 52.24p, valuing the business at £530mln.
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