Best AIM Company 2016

RNS Number : 9161X
Sound Energy PLC
30 November 2017
 

30 November 2017

 

Sound Energy PLC

("Sound Energy" or the "Company")

 

Exploration Volume Estimates for Sidi Moktar

 

Sound Energy, the African and European focussed upstream gas company, is pleased to provide the Company's first volumes estimate of the exploration potential of the Sidi Moktar exploration permits ("Sidi Moktar Permits") in Central Morocco.

 

The Sidi Moktar Permits 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 Company has recently successfully re-entered, completed, perforated and flared gas at surface from the Argovian reservoir (historically the main producing reservoir in the Kechoula discovery).  The Company will provide an update on the Argovian work programme shortly. 

 

The Company recently commissioned Echo Geoscience Management Ltd* ("EG") to undertake an independent preliminary technical evaluation** of the available historical exploration well and 2D seismic data across the Sidi Moktar Permits area with a focus on the under-explored pre-salt plays beneath the Argovian reservoir (the "EG Study"). 

 

The Company is pleased to report the results of the EG Study, which has significantly enhanced the Company's view of the exploration potential and confirms the substantial upside of this pre-salt play.  EG have defined and mapped a portfolio of 28 Liassic, Triassic and Paleozoic leads in a variety of hydrocarbon trap types across the Sidi Moktar Licences.  Much of the potential lies within 11 of the pre-salt Triassic and Paleozic leads ranging in size individually from 200 Bcf to 2.5 Tcf.  The EG Study highlights an exploration potential best case of 8.9 Tcf with an high of 11.2 Tcf and a low case of 6.7 Tcf, unrisked gas originally in place (gross).  The largest of the leads include the following unrisked gas originally in place (gross):

 

·    The 'EG6' Lead (30km south-east of the producing Meskala gas field), a tilted fault block with estimated volumes of 2.5 Tcf best case, a 4.3 Tcf high case and a 0.9 Tcf low case.

·    The 'EG3' Lead (40km east of Meskala gas field), a tilted fault block with estimated volumes of 1.1 Tcf best case, a 1.9 Tcf high case and a 0.4 Tcf low case. 

·    The 'EG7' Lead (20km east of the Kechoula gas discovery), a well-defined four-way-dip closure with a 0.7 Tcf best case with a 1.3 Tcf high case and a 0.3 Tcf low case.

 

The Company expects to shortly sign a new eight-year Exploration Permit for the Sidi Moktar Licences covering a larger area of 4,499 square kilometres.  The Company expects to hold a 75% position in this renewed Exploration Permit with Morocco's Office National des Hydrocarbures et des Mines ("ONHYM") holding a 25% position.  After award the Company will commence the reprocessing of existing 2D seismic data and begin the acquisition a minimum of 500 kilometres of new 2D seismic data and undertake further geological studies in anticipation of high impact exploration drilling.  The work programme will be focussed to address the critical risks with the expectation of increasing the chance of geological success to greater than 30% prior to drilling.  Preparations for the new 2D seismic programme are already underway.

 

The Company cautions that 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. Notwithstanding the preliminary volumetric assessments of exploration potential across the Sidi Moktar Licences estimated by the EG Study, the Company requires further exploration activity, including the acquisition of additional seismic and further drilling activities to substantiate the exploration potential and the potential recoverable volumes.

 

For further information please contact:

 

Vigo Communications - PR Adviser

Patrick d'Ancona

Chris McMahon 

Alexandra Roper

 

Tel: +44 (0)20 7830 9700

Sound Energy

James Parsons, Chief Executive Officer 

 

j.parsons@soundenergyplc.com

 

Smith & Williamson - Nominated Adviser

Azhic Basirov

David Jones

Ben Jeynes 

 

Tel: +44 (0)20 7131 4000

RBC Capital Markets - Broker

Matthew Coakes

Martin Copeland

Laura White

 

Tel: +44 (0)20 7653 4000

The information contained in this announcement has been reviewed by Sound Energy's Exploration Director, Brian Mitchener, a chartered petroleum geologist.  Bcf means billion standard cubic feet of gas; Tcf means trillion cubic feet of gas; and best case, high case and low case estimates are consistent with SPE (The Society of Petroleum Engineers) guidelines.

 

* Echo Geoscience Management Ltd (www.echo-geo.com) is a UK based consultancy providing geological and geophysical interpretation services to the upstream oil and gas industry.  For the sake of clarity, Echo Geoscience Management Ltd is not related to Echo Energy plc

 

** The EG Study was prepared by Echo Geoscience Management Ltd, ("EG") for the sole use of Sound Energy PLC. The Study is not a Competent Person's Report (CPR), a Qualified Person's Report (QPR) or a Technical Expert's Report (TER) and should not be relied upon as such. While the Study was prepared in good faith, using reasonable skill and care, reasonable assumptions, and professional judgement, it was based on an analysis of information provided by others (the accuracy and completeness of which, EG has not been able to fully verify). The Study is predictive and forward-looking in nature and is based on opinions and professional judgement, so it is subject to various unknowns, including the inherent uncertainties in the interpretation of geological and technical data. The Study should, therefore, not be considered to be a definitive, complete or accurate statement of hydrocarbon resource or any guarantee of results or performance. EG accepts no liability whatsoever for any errors or omissions in the Study (or for any responsibility for updating the Study, should further information become available).

 

 


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