TIDMSOU
RNS Number : 2490E
Sound Energy PLC
08 February 2018
8 February 2018
Sound Energy PLC
("Sound Energy" or the "Company")
Eastern Morocco 2018 Work Programme and Operations Update
Sound Energy, the Moroccan upstream gas company, is pleased to
provide details of its 2018 work programme and an update on the
Company's acquisition of geophysical and geological data in Eastern
Morocco.
Following the completion of the aerial gradiometry programme and
the early results of the ongoing seismic surveys, the Company is
pleased to confirm its exploration plans for 2018 exploration in
Eastern Morocco.
Commenting on today's announcement, James Parsons, Sound
Energy's Chief Executive Officer, said:
"These early results of our geophysical and geological studies
underscore our confidence in the Eastern Morocco exploration
potential. We are now moving forward with our exploration drilling
programme with a view to unlock three of our largest plays. Success
at any one of these wells, together with the emerging seismic
results, will likely be a step change in this new hydrocarbon
province, and build significant new value for shareholders".
Leading player in an established gas province:
Sound Energy and its partners hold an approximately 28,548 Km2
exploration acreage position in Eastern Morocco, including the
Company's existing discovery at Tendrara. The Company drilled two
successful wells there in 2016 and 2017, which established the
economic gas potential in the TAGI (Triassic) reservoirs at
Tendrara.
As announced by the Company on 20 December 2017 and confirmed on
23 January 2018, a recently completed resources certification has
confirmed a total mid-case 0.65 Tcf gas originally in place
("GOIP"*) in the TE-5 Horst and mid-case contingent resources of
377 Bcf (low-mid-high 197-377-533 Bcf).
The Company is pursuing the development of this important
discovery, and looks forward to updating the market on development
funding initiatives which are well advanced, as appropriate, in due
course.
Geophysical surveys:
Safe and reliable operations are at the heart of Sound Energy's
strategy.
Sound Energy's internal assessment is that its Eastern Morocco
licences contain exploration potential of 9-17-31 Tcf of GOIP (low,
mid and high case). Geophysics, geology and drilling programmes are
underway to unlock the potential of the acreage.
The Company is now pleased to confirm that the final data
processing of 22,800 square kilometres of recently acquired aerial
gradiometry data has now been completed and that the modelling of
that data is expected to conclude by the end of February 2018. This
coverage spans the entire Tendrara, Matarka and Anoual permits, and
it is already leading to important insights into the basin
structure and petroleum systems modelling, particularly in the TAGI
and underlying Paleozoic plays.
Seismic acquisition is also underway, with over 30% of the
planned 2,900 line kilometre survey already completed. The seismic
will provide additional important insights into the basin and is
being used to delineate and de-risk new exploration targets for
drilling.
Once completed, the seismic survey will extend over a quarter of
Sound Energy's Eastern Moroccan acreage, which contains at least
half of the Company's prospect and lead portfolio. This represents
some 50% of the basin exploration potential (9 -17-31 Tcf; low,
mid, high GOIP). The Company therefore expects this high impact,
and carefully targeted, seismic acquisition programme to delineate
over 8 Tcf of mid case GOIP, and more in the upside case (5 - 8 -16
Tcf; low-mid-high GOIP).
The Company has divided the seismic acquisition programme into
three discrete phases, focused on confirming the exploration
drilling locations for the 2018 work programme:
-- Phase 1: This phase of the seismic survey was completed in
2017, and comprises 341 line kilometres of 2D seismic across the
TAGI structural play (the A1, A2 and M1 structures, located
approximately 25Km to 50 Km north-west of the TE-5 Horst).
-- Phase 2: This acquisition targets the TAGI stratigraphic play
(Lakbir NE and TE-2 25 to 50km north-east of the TE-5 Horst) and is
currently 50% complete.
-- Phase 3: This phase continues to further image and de-risk
additional leads within the TAGI structural play (M5, B,
approximately 50km west of the TE-5 Horst). This phase of
acquisition is expected to start in April 2018.
The overall seismic acquisition programme is planned to be
completed by August 2018 with the final processed products
delivered to the Company in October 2018. Separate independent
competent persons reports ("CPR") will be commissioned after the
completion of each phase of seismic acquisition. The first CPR, due
in March 2018, will cover the Phase 1 seismic area including the A
Structure.
Exploration Drilling Campaign:
During 2018 the Company plans to start a three well exploration
campaign in Eastern Morocco, subject to partner approvals. Sound
Energy will leverage the recently acquired and to be acquired
geophysical data and the insights from its 2016-17 drilling
programme, in order to test three independent - and high potential
- play types. All of the targeted volumes provided below are
included within the Company's internally estimated total
exploration potential volumes.
-- TE-9 expected to spud July 2018
o The 'A' Structure (25km north-west of TE-5 Horst) targeting
estimated mid case GOIP volumes of 0.7 Tcf (1.2 Tcf upside case and
a 0.4 Tcf low case). This well will have two objectives, firstly to
discover commercial quantities of gas in the TAGI reservoir and
secondly an opportunity to target a potentially similar volume in
the underlying Paleozoic.
-- TE-10 expected to spud as the second well, likely in
September 2018, targeting the North-east Lakbir (25km north
north-east of TE-5 Horst), designed to target a TAGI stratigraphic
pinch-out play, with currently estimated volumes of 2.6 Tcf mid
case, GOIP (5.0 Tcf GOIP upside case and a 1.2 Tcf GOIP low
case).
o The Company is also considering a re-drill of the TE-2 well
(40km north east of the TE-5 Horst), also targeting a TAGI
stratigraphic pinch-out play. This option is under evaluation as an
additional exploration well (with estimated mid case estimated
volumes of 1.4 Tcf GOIP (2.7 Tcf GOIP upside case and a 0.7 Tcf
GOIP low case).
-- A third well, TE-11, likely a Palaeozoic well with a spud
potentially in November 2018. The location for this well will be
finalised following receipt of the phase 2 and phase 3 seismic.
These exploration wells, which of course remain under review as
the latest seismic data is received, will span multiple target
types across both structural and stratigraphic traps and Triassic
and Palaeozoic reservoirs. Each of the wells will take
approximately 60 days. In anticipation of drilling the TE-9 well,
the completion of the environmental impact assessment is expected
imminently and the Company will commence ground works in April.
The Company cautions that general exploration in the oil and gas
industry contains an element of risk and there can be no guarantee
that its current estimates of volumes of gas originally in place
will be substantiated by exploration drilling or would actually be
available for extraction. While the company makes every effort to
deliver the exploration programme on schedule, there are
non-subsurface HSSE risks (weather, contractor performance,
equipment reliability etc) which may impact the operational
schedule.
* all GOIP volumes included in this announcement are gross and
unrisked. The term 'unrisked' refers to exploration potential where
no subsurface CoS (chance of success) has been applied.
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 - Joint Broker Tel: +44 (0)20 7653 4000
Matthew Coakes
Martin Copeland
Laura White
Macquarie - Joint Broker Tel: +44 (0)20 3037 2000
Alex Reynolds
Nick Stamp
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 standard cubic feet of gas; Bcf means billion
standard cubic feet of gas.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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