viewSound Energy PLC

Sound Energy moves swiftly on to second well at A1 exploration programme in Morocco

A1 is some 19 kilometres from the Tendrara production concession area and seen as a potential major expansion of its existing discoveries

oil rig
Rig has shifted to the TE-10 location

Sound Energy PLC’s (LON:SOU) TE-9 exploration well in Morocco was a rare setback for the ambitious junior.

Drilled to a depth of 2,925 metres, no producible gas was found and the rig has now shifted on to TE-10, the second of a three well programme targeting the A1 prospect.


A1 is some 19 kilometres from the Tendrara production concession area and seen as a potential major expansion of its existing discoveries in Eastern Morocco.

East Morocco is the primary focus for Sound. Here, the portfolio essentially comprises three areas, of which the Tendrara discoveries (47.5% owned by Sound) represent the most advanced of the three components.

The area that the market has known as Tendrara spans some 9,000 square kilometres and it is made up of eight permit areas.

Tendrara itself can be separated into two distinct ventures. One is a field development project and the other is very much focused on exploration.

The A1 prospect is one of the main exploration objectives and ahead of the TE-9 well, was estimated to contain 278bn to 1.25 trillion cubic feet – from the low case to the high.

In August, Sound signed an eight-year petroleum agreement which pulled together the Tendrara and Matarka exploration areas into one licence and also brought long-term partner Schlumberger in with a direct interest.

Greater Tendrara spans some 14,500 square kilometres surrounding the Tendrara gas discovery. Sound will hold 47.5% of the area, alongside Schlumberger, which has 27.5% and the state’s ONHYM vehicle, which retains a 25% stake.

This united Greater Tendrara was in addition to the Anoual petroleum agreement and the separate production concession for the Tendrara gas discovery.

Development work at TE-6, TE-7 discoveries

In its previous drilling programme, Sound hit substantial quantities of gas at Tendrara with its TE-6 and TE-7 wells.

Development is expected to comprise five new horizontal wells along with the re-engineering of the wells, it says.

The project would also require a gas treatment and compression facility, as well as a 120-kilometre pipeline.

First gas is expected after around two years with production volumes projected to be around 60mln cubic feet per day over a 10-year period.

Sidi Moktar presents another opportunity, subject to a deal

Quite separately, the group also owns a 75% stake in the high potential Sidi Moktar exploration area.

It spans about 4.5 square kilometres, and it is close to existing infrastructure and end-user demand (Sound highlights that it is close to a state-owned phosphate plant).

Here too there is an awful lot of potential – Sound estimates nearly 9trn cubic feet of undiscovered gas in its ‘best case’.

Some relatively shallow discoveries have been made in the area previously, which have some development potential, though the big hypothetical resource numbers are seen in deep targets – deeper than 3kms below surface.

At Sidi Moktar, Sound wants a new partner to share the burden with further exploration expected in 2019.

Sound says it has one “potentially drill ready” prospect in the deep play, and it expects additional wells will require additional insights from seismic work. 

Sidi Moktar is essentially a secondary project to Tendrara, contingent upon some form of partnership or funding deal.

Focus switches to TE-10

Shares fell back following the TE-9 result and attention will now focus on TE-10, which will target a TAGI structural-stratigraphic play containing estimated volumes of 2.6Tcf mid-case gross gas in situ.

Cash balances at 14 November were more than US$30mln.

At 16.5p, Sound is valued at £188mln.

Quick facts: Sound Energy PLC

Price: 3.5 GBX

Market: AIM
Market Cap: £37.79 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Sound Energy PLC named herein, including the promotion by the Company of Sound Energy PLC in any Content on the Site, the Company receives from...



Investor Update: Sound Energy agrees deal to sell stake in East Morocco

Headlines from the Proactive UK newsroom. Sound Energy (LON:SOU) has signed a preliminary agreement to sell just over half its stake in its Tendrara licences in East Morocco for US$113mln. The consideration is US$54mln cash and the rest is a carry for future capital...

1 week, 6 days ago


Second Price Monitoring Extn

5 days, 10 hours ago

Price Monitoring Extension

5 days, 10 hours ago

Second Price Monitoring Extn

5 days, 15 hours ago

Price Monitoring Extension

5 days, 15 hours ago

Board Change

1 week, 5 days ago


1 week, 6 days ago

Second Price Monitoring Extn

2 weeks, 5 days ago

3 min read