Sound Energy PLC Eastern Morocco: Exploration Drilling Programme (6131S)
October 04 2017 - 2:00AM
UK Regulatory
TIDMSOU
RNS Number : 6131S
Sound Energy PLC
04 October 2017
4 October 2017
Sound Energy PLC
("Sound Energy" or the "Company")
Eastern Morocco: Exploration Drilling Programme
Sound Energy, the African and European focussed upstream gas
company, is pleased to announce a forthcoming, high impact, three
well exploration drilling programme in Eastern Morocco.
Commenting on today's announcement, James Parsons, Sound
Energy's Chief Executive Officer said:
"Sound Energy is now approaching another exciting period of back
to back drilling in Eastern Morocco. The three well exploration
programme we are announcing today has the potential to
significantly increase the core value of our Moroccan acreage and
to establish Eastern Morocco as a prolific but low cost gas
province, on the doorstep of large and growing energy markets."
Sound Energy and its partners hold significant gas exploration
acreage in Eastern Morocco, which the Company internally estimates
to include a total of 1.03 Tcf gas originally in place ("GOIP")
over the greater Tendrara, TE-5 Horst and Lakbir and TE-4 highs
(consisting of a mid-case 0.63 Tcf GOIP on the TE-5 Horst and an
additional 0.4 Tcf unrisked GOIP over the Lakbir High and the TE-4
high). A reserves certification is currently underway on the TE-5
Horst core volumes of 0.63Tcf GOIP.
In addition to the Company's geophysical programme of a
combination of aerial gravity gradiometry, 2D seismic surveys, 2D
seismic reprocessing and geological studies, the Company now
intends to accelerate its exploration drilling programme with a
view to rapidly and materially increasing its discovered volumes in
Eastern Morocco, thereby significantly increasing the core value of
the Moroccan acreage and enabling right-sizing of the planned
facilities.
The new exploration programme in Eastern Morocco includes three
wells to be drilled back to back and will target high impact
locations with significant exploration potential, with the aim of
further unlocking the Company's internally estimated unrisked gross
GOIP exploration potential volumes across Sound Energy's Eastern
Moroccan acreage of 17 Tcf mid case (31 Tcf upside case and 9 Tcf
low case), as announced on the 1 February 2017.
These exploration wells will span multiple target types across
structural and stratigraphic traps and Triassic and Paleozoic
reservoirs, and each of the wells is expected to cost approximately
US$10 million.
The anticipated targets of the three well programme and the
Company's internally assessed volume estimates (gross unrisked
GOIP) of each of those targets are as follows:
-- The 'A' Structure (25km north-west of TE-5 Horst) targeting a
0.7 Tcf mid case with a 1.2 Tcf upside case and a 0.4 Tcf low case,
all from the Triassic and a similar sized lead in the
Paleozoic.
-- North-east Lakbir (20km north-east of TE-5 Horst) designed to
target the TAGI stratigraphic pinch-out play, with estimated
volumes of 2.6 Tcf mid case, a 5.0 Tcf upside case and a 1.2 Tcf
low case.
-- A Paleozoic test beneath the TE-5 Horst.
The previously announced appraisal well evaluation will remain
under review pending completion of the exploration drilling
programme.
The exploration drilling programme leads will be reviewed again
and high-graded towards the end of the year following receipt of
the gradiometry, 2D seismic surveys, the 2D seismic reprocessing
and the geological studies.
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.
* the term 'unrisked' refers to exploration estimates of gross
GOIP 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 Capital Markets - 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 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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