Sound Energy PLC Mobilisation of Rig to Sidi Moktar (5112C)
18 April 2017 - 4:00PM
UK Regulatory
TIDMSOU
RNS Number : 5112C
Sound Energy PLC
18 April 2017
18 April 2017
Sound Energy plc
("Sound Energy" or the "Company")
Mobilisation of Rig to Sidi Moktar
Sound Energy, the African and European focused upstream gas
company, is pleased to announce the mobilisation of a rig to the
Company's Sidi Moktar asset, onshore Morocco.
The Sidi Moktar licences ("Sidi Moktar") cover 2,700 square
kilometres in the Essaouira basin, central Morocco and contain an
existing gas discovery in the Lower Liassic ("Kechoula") and
significant deeper potential. Sidi Moktar is close to existing
infrastructure, including the large scale Moroccan state owned OCP
Phosphate plant.
Two wells have already been drilled at Kechoula by previous
operators and have been estimated to have an unrisked mid case
original gas in place ("GOIP") of 293 Bscf (gross). As previously
announced by the Company, the Sidi Moktar licences are also
estimated, similar to the Company's Eastern Morocco positions, to
have significant pre-Jurassic exploration potential from the TAGI
and Paleozoic in excess of 1 Tcf unrisked GOIP (gross). The Company
notes the quantitive assesment prepared by a previous operator in
1998 which referred to exploration potential of the Sidi Moktar
licences of up to 9 Tcf unrisked GOIP (gross) in the TAGI and
Paleozoic. The Company will require the reprocessing of existing 2D
seismic, acquisition of new 2D seismic and drilling results before
forming its own volume estimates for the exploration potential of
the Sidi Moktar licences.
The Company announces that the SAIPEM rig used to drill the
Company's most recent Tendrara well (TE-8) has now been mobilised
to Sidi Moktar. The rig will, upon arrival in May 2017, execute the
re-entering and testing of the two existing wells on the Kechoula
discovery which, subject to initial well results, may include a
sidetrack and an extended well test thereafter.
Given the Company's strong financial position, the Company also
announces that it has decided not to proceed with the previously
announced proposed farm out of Sidi Moktar, and to instead retain
its 75% operated position in the Sidi Moktar licences.
Once the workovers, and any sidetrack and extended well test are
complete, the Company intends to renew the Sidi Moktar licences
(which currently expire on 28 August 2017) thereby starting a new
eight year period. The first activity following the renewal of the
Sidi Moktar licences will be 2D seismic reprocessing and the
acquisition of new 2D seismic, scheduled for 2018, after which the
deeper pre-salt horizons can be drilled.
James Parsons, the Company's Chief Executive, commented:
"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.
Once the rig has finished at Sidi Moktar we expect it to return
to Tendrara to continue our unlocking of the recently proven
transformational Eastern Morocco TAGI and Paleozoic plays."
For further information please contact:
Vigo Communications - PR Adviser Tel: +44 (0)20 7830 9700
Patrick d'Ancona
Chris McMahon
Alexandra Roper
Sound Energy j.parsons@soundenergyplc.com
James Parsons, Chief Executive Officer
Smith & Williamson - Nominated Adviser Tel: +44 (0)20 7131 4000
Azhic Basirov
David Jones
Ben Jeynes
RBC - Broker
Matthew Coakes
Martin Copeland
Laura White
This announcement is inside information for the purposes of
Article 7 of Regulation 596/2014.
The information contained in this announcement has been reviewed
by Sound Energy's Executive Vice President, Brian Mitchener, a
chartered petroleum geologist.
Tcf means trillion cubic feet of gas; Bscf means billion cubic
feet of gas.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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