Sound Energy PLC (LON:SOU) chief executive James Parsons told investors that the explorer is now ready for its next “potentially transformational” phase of drilling.
This morning, in its interim results statement, Sound detailed its operational progress onshore Morocco which in the first six months of 2018 saw the company advance its two-pronged strategy to develop existing discoveries at Tendrara whilst also undertake high impact exploration in the surrounding areas.
In the period, it completed a substantial (2,850 kilometres) seismic exploration programme, which was fully funded by partner Schlumberger.
It applied for and subsequently secured necessary approvals for a production concession covering the Tendrara discovery, and, engineering operations also advanced in regards to the infrastructure development that will be needed to monetise the gas.
READ: Sound Energy gets production concession for Tendrara gas discovery
Approval was also secured to drill two new wells (TE-9 and TE-10) as the drilling locations were finalised with the help of the acquired seismic data. Further wells also being planned by Sound.
TE-9 is expected to target the A1 structure which, according to Sound, has the potential to unlock significant value and de-risk nearby exploration leads.
"Our priority so far this year has been the de-risking in Eastern Morocco of both our existing discovery and our significant exploration potential,” Parsons said in the results statement.
“The company is now ready for this next, potentially transformational, period of exploration drilling."
Elsewhere, in Morocco, Sound said it continues to progress efforts to farm-out a portion of the Sidi Moktar project. Sound’s Italian assets were disposed of during the period, with the transaction that saw the creation of Coro Energy.
Sound ended the half with US$19.4mln in cash, and, it subsequently raised a further US$15mln through a share placing. Altogether the company said it was in a strong financial position.
The explorer reported a £3.4mlnloss from continuing operations.