Sound Energy PLC Sidi Moktar: Rig Arrival and Work Programme (3462F)
17 May 2017 - 4:00PM
UK Regulatory
TIDMSOU
RNS Number : 3462F
Sound Energy PLC
17 May 2017
17 May 2017
Sound Energy plc
("Sound Energy" or the "Company")
Sidi Moktar : Rig Arrival and Work programme
Sound Energy, the African and European focused upstream gas
company, is pleased to announce that the SAIPEM rig has now arrived
at the Company's Sidi Moktar asset, onshore Morocco ahead of the
re-entry and testing of the Lower and Middle Jurassic in two
existing wells on the Kechoula discovery.
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 pre-salt potential. Sidi Moktar is close to existing
infrastructure and gas demand, including the large scale Moroccan
state owned OCP Phosphate plant.
The two wells to be re-entered and tested by the Company, Koba-1
and Kamar-1, have already been drilled at Kechoula by previous
operators and have been estimated to have an unrisked mid case
original gas in place ("GOIP") in the Lower Liassic reservoir of
293 Bscf (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.
In the near term, the Company plans to complete a 2 stage
workover of the two wells, which will include:
-- Completion, perforation and testing of the Lower Liassic in
Koba-1, with possible additional testing of the Argovian - all
expected to commence before the end of May 2017
-- Completion, perforation and testing of the Lower Liassic in
Kamar-1, with a possible additional testing of the Dogger - all
expected to start mid-June 2017
Should the wells deliver a commercial flow rate, the Company
will complete an Extended Well Test and assuming a successful test,
target first commercial gas to the domestic market, around the end
of 2017.
James Parsons, the Company's Chief Executive, commented:
"Sidi Moktar represents one of many exciting opportunities for
operational success to add material value to our business in the
near future.
The Sidi Moktar licences are estimated to have significant
pre-Jurassic exploration potential from the TAGI and Paleozoic,
similar to our Tendrara licence in Eastern Morocco, reinforcing our
strategy of identifying opportunities that can bring near term
benefit to Sound Energy and can be progressed quickly from an
infrastructural perspective.
We continue to believe that Morocco is an exciting hydrocarbon
province with significant upside for Sound, and look forward to
updating the market on progress in due course."
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 Tel: +44 (0)20 7653 4000
Matthew Coakes
Martin Copeland
Laura White
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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