TIDMSOU
RNS Number : 8977F
Sound Energy PLC
23 May 2017
23 May 2017
Sound Energy plc
("Sound Energy" or the "Company")
Eastern Morocco: Final TE-8 Results and Revised Estimates
Sound Energy, the African and European focused upstream gas
company, recently completed the drilling of its third well at
Tendrara in Eastern Morocco, TE-8, achieving Target Depth at 3,120
metres. The Company is pleased to report the results of the well,
which have now been finalised and agreed with the Company's
Strategic Partner.
TE-8 was drilled some 359 metres into the Paleozoic and
identified the full series of Westphalian sandstones (between 2,762
metres through to 3,120 metres), which are one of the producing
horizons in neighbouring Algeria. The sandstones are confirmed to
lie in a separate pressure regime to the overlying TAGI play in a
large tilted fault block beneath the TE-5 horst and the Lakbir
High. Gas shows were encountered over this interval and subsequent
petrophysical analysis suggests that these sandstones may be
permeable and likely to be producible with mechanical stimulation.
Further wells targeting the Paleozoic on the Tendrara permit are
being planned, but are not likely to be drilled prior to the
completion of reprocessing of existing 3D seismic, which is
currently underway.
TE-8 also penetrated 114 metres of TAGI I reservoir
(approximately twice the thickness of the TAGI I reservoir
encountered in wells on the TE-5 horst) with gas shows. The TAGI
sands encountered by TE-8 are also confirmed to be at the same
reservoir pressure as the previous wells on the TE-5 horst (TE-5,
TE-6 and TE-7).
Sedimentologically, the TAGI at the specific TE-8 location was
however found to be much finer grained than any of the previous
wells and cemented with carbonate, anhydrite and halite. Following
evaluation of the cores and liquid samples, the Company believes
that the TAGI reservoir is in a transition zone with a Gas Water
Contact circa 1,350 metres sub-sea level, inferred from TE-6 well
data.
Based on these final TE-8 results, the Company has now
reassessed its internal volumetric estimates within the area of the
Tendrara 3D seismic, and is pleased to report an increase of the
Company's internal preliminary volume estimates over the Tendrara
greater TE-5 horst and Lakbir and TE-4 highs to a total of 1.03 Tcf
(gross), consisting of a mid-case 0.63 Tcf of Gas Originally in
Place ("GOIP") (gross) on the TE-5 horst and an additional 0.4 Tcf
unrisked GOIP (gross) over the Lakbir High and the TE-4 high up-dip
of the well. Prior to the drilling of TE-8 the Company had
internally estimated GOIP over the TE-5 horst of between 0.3 Tcf
and 0.5 Tcf (gross).
Final Investment Decision ("FID") on the initial development of
the estimated 0.63 Tcf GOIP over the TE-5 horst is planned for end
of 2017. A competent persons report will be conducted pre-FID.
Additional upside is possible, but will be subject to the
following work programme which will aim to delineate the
distribution of good quality reservoir facies, the timing of
cementation versus gas charge and the interpretation of gas versus
brine versus tight rock on the reprocessed 3D seismic.
As announced on 17 May 2017, the SAIPEM rig used to drill TE-8
has now arrived on site at Sidi Moktar in Western Morocco.
Following completion of operations at Sidi Moktar, the rig will
return to Eastern Morocco. Three further operations are under
evaluation to further develop the TAGI in Eastern Morocco during Q4
2017:
-- Re-entry of TE-5 to mechanically stimulate and seek to prove
additional volumes in the TAGI II reservoir;
-- A crestal well into the TE-4 horst with the aim of proving additional volume; and
-- A down flank well on the TE-5 horst to target a possible deeper gas-water contact
The Company also continues with its recently initiated Eastern
Moroccan seismic programme, which is hoped will ultimately lead to
the identification of significant additional volumes in areas not
previously surveyed to the north-east and up-dip of the Lakbir
High, and to the west on a series of structural highs,
predominantly over the Tendrara Licence area.
The Company advises that the pressure recovery at the Company's
second well in Eastern Morocco, TE-7, post the recent Extended Well
Test continues. Final results of the pressure build up and the
interference test at TE-5 and TE-6 are expected during July
2017.
This announcement is inside information for the purposes of
Article 7 of Regulation 596/2014.
James Parsons, the Company's Chief Executive, commented:
"I am delighted to confirm our third well in Eastern Morocco as
the definitive Paleozoic play opener with thick Westphalian sands
which should be producible across the region.
Despite a relatively tight TAGI reservoir, the confirmation of
the Gas Water Contact at 1,350 metres has enabled the Company to
double its internal TAGI estimates and materially increase first
phase development volumes.
We eagerly look forward to commencing the 2D exploration seismic
programme in August and continuing operations in Eastern Morocco
once we have finished at Sidi Moktar.
In the meantime, we are focused entirely on the rapidly
approaching results at Badile and Sidi Moktar."
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. The Company's internal estimates are
made in accordance with SPE standards.
Tcf means trillion cubic feet of gas.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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