Sound Energy Announces Eastern Morocco Aerial Gradiometry Results

Sound Energy, the African and European focussed upstream gas company, announces completion of the Airborne Full Tensor Gravity Gradiometry (FTG) and magnetic survey acquisition in Eastern Morocco. 

The survey team, provided by AustinBridgeporth, flew a total of 26,700 survey line kilometres, across a total area of 22,800 square kilometres over the Tendrara, Matarka and Anoual licences in just less than twelve weeks. The survey, together with the new 2D seismic programme which is now underway, was commissioned to develop a better understanding of the subsurface structure and sedimentary succession.

The Company confirms receipt of a preliminary high resolution FTG and magnetic dataset, delivered on schedule and to budget, with highly encouraging results.  Critically, these results include the delineation of previously unrecognised subsurface features and a clearer view of the deeper structure across the three licences. The preliminary data provides a far more detailed view of a deep, thick Paleozoic basin extending over the three permit areas, bounded by a series of NE-SW and NNE-SSW faults. The NNE-SSW fault trend is coincident with the Paleozoic anticline identified on 3D seismic beneath the TE-5 Horst (the possible third well location in the 2018 exploration programme). Other similar fault trends may indicate further Paleozoic potential. Following further data processing, likely mid-December, the Company expects to have an improved understanding of the exploration potential of the licence areas.

SOUND ENERGY at a glance

Sound Energy is an African focused upstream Company, listed on AIM (LSE:SOU), with a supportive investor base, a strategic partnership with Schlumberger and a balanced and evolving portfolio.

The Company are growing counter-cyclically, delivering value through the drill bit with a potential multi Tcf discovery at Tendrara (Eastern Morocco) and have a bold growth agenda with Sidi Moktar (Morocco).

In September 3017, Sound Energy completed the acquisition of the interests of Oil & Gas Investment Fund S.A. ("OGIF") in Eastern Morocco following receipt of final approvals in relation to the Anoual and Tendrara licence areas.

As a result, the Company now holds:

  • An operated 75% position, of which 27.5% is shared with Schlumberger resulting in a net 47.5% position for the Company, in the Tendrara petroleum agreement; and
  • An operated 75% position, of which 27.5% is shared with Schlumberger resulting in a net 47.5% position for the Company, in the Anoual petroleum agreement (formely the Meridja reconnaissance area); and
  • An operated 75% position, of which 27.5% is shared with Schlumberger resulting in a net 47.5% position for the Company, in the Mararka reconnaissance exploration licence (covering the previously relinquished Tendrara acreage).

MOROCCO OPERATIONS

Tendrara
Sound Energy farmed in to the Tendrara licence in June 2015, taking a 55% working interest in the licence, partnering ONHYM (25% interest) and Oil & Gas Investment Fund (“OGIF”) (20% interest) and assuming Operatorship.

In December 2015, Sound entered into a Field Management Agreement (FMA) with Schlumberger. Schlumberger agreed to fund a significant portion of the capital expenditure on the first three Tendrara wells and provide technical services, equipment and personnel to Sound Energy as Operator in exchange for an upside linked to production performance.

OGIF has expressed interest to fund a new pipeline connecting Tendrara to the Gazoduc Maghreb Europe (GME) pipeline.

In November 2017, Sound Energy announced completion of the Airborne Full Tensor Gravity Gradiometry (FTG) and magnetic survey acquisition over the Tendrara, Matarka and Anoual licences. 

The survey team, provided by AustinBridgeporth, flew a total of 26,700 survey line kilometres, across a total area of 22,800 square kilometres in just less than twelve weeks. The survey, together with a new 2D seismic programme, was commissioned to develop a better understanding of the subsurface structure and sedimentary succession.

The Company confirmed receipt of a preliminary high resolution FTG and magnetic dataset, with highly encouraging results. Critically, these results include the delineation of previously unrecognised subsurface features and a clearer view of the deeper structure across the three licences. The preliminary data provides a far more detailed view of a deep, thick Paleozoic basin extending over the three permit areas, bounded by a series of NE-SW and NNE-SSW faults. The NNE-SSW fault trend is coincident with the Paleozoic anticline identified on 3D seismic beneath the TE-5 Horst (the possible third well location in the 2018 exploration programme). Other similar fault trends may indicate further Paleozoic potential. Following further data processing, likely mid-December, the Company expects to have an improved understanding of the exploration potential of the licence areas.

Well Results
First well (TE-6):
During the first half of 2016, the first Tendrara well, TE-6, was drilled to a measured vertical depth of 2,665 metres and successfully encountered approximately 28 metres of net gas pay in the TAGI reservoir. Flow was achieved pre-stimulation and, post-stimulation, a rate of 17 mmscf/d (0.5 million scm/d) was achieved. This rate is significantly above initial expectations and represents a highly commercial rate.

Second well (TE-7): the Company's second Tendrara well (TE-7) was drilled successfully to a total measured depth of 3,459 metres, corresponding to a vertical depth of 2,611 metres. TE-7 has a total contact length through the TAGI reservoir of some 837 metres, including a 700 metres sub-horizontal section. A gas flow rate was achieved, post stimulation, of 32 MMscf/d. This rate is significantly above the Company's pre-drill expectations. Based on the clean up phase, the well's potential is predicted by the Company to be significantly above 40 MMscf/d with a 50% drawdown

Sidi Moktar
The Sidi Moktar permit is located in the Essaouira Basin in central Morocco (Western sea border) and is sub-divided into three blocks (North, South and West) with a combined area of 4,500 square km.

Adjacent to and surrounding the Permit is the Meskala Field, a gas/condensate discovery, which has been producing since the late 1980s and represents one of the most significant discoveries in Morocco to date.

In 2009, Magreb Petroleum Exploration (MPE) signed a Petroleum Agreement with ONHYM to secure a 75% interest in the Sidi Moktar North, South and West licenses, the remaining 25% being held by ONHYM (the Moroccan NOC).  MPE subsequently farmed out a 50% working interest operated position to Petromaroc (formerly Longreach) in exchange for a full carry to first commercial gas.  During the course of 2013 and 2014, Petromaroc drilled two wells which both had gas shows but which were never completed and tested.   In January 2016, Sound secured and retained MPE’s 25% carried interest in the license and in March 2016  secured Petromaroc’s 50%, which was then farmed out in a back-to-back transaction with Culebra Petroleum Ltd.

Meridja
Sound has secured an option to acquire a 55% interest in the Meridja permit, located next to its Tendrara license.

The Meridja reconnaissance permit is currently held 75% by Oil & Gas Investment Fund S.A.S (“OGIF”) and 25% by Office National des Hydrocarbures et des Mines (“ONHYM”).

Both Meridja and Tendrara have a pericratonic position and are located between three geologic domains: the inverted High Atlas, the Folded Hercynian Basement and the Non Deformed Saraha Platform.

In Meridja, two main targets have been identified: the Paleozoic formations, which belong to the Hercynian Saharan Platform, and the Triassic Sandstones (TAGI) which belong to the Triassic province.

Currently, 15 leads have been identified with reserves potentially similar in scale to those in Tendrara.

Drilling Programme
In October 2017, Sound Energy announced a forthcoming, high impact, three well exploration drilling programme in Eastern Morocco.

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).

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