15 February 2016
Sound Energy plc
("Sound Energy" or the "Company")
Sound Energy, the European/Mediterranean focused upstream gas company, is pleased to announce that ground works have commenced on site at the Company's Tendrara licence area and that all contracts have now been awarded for the first well.
The Company is pleased to confirm that civil works on site at Tendrara have now commenced. This includes the upgrading of local infrastructure which will be followed by the preparation of the camp and the two well pad areas.
Further to the Field Management Agreement ("FMA") entered into with Schlumberger in relation to Tendrara, as announced by the Company on 29 December 2015, the Company is also pleased to confirm that all contracts associated with the drilling of the first appraisal well at Tendrara have now been awarded. The contracts awarded include a binding rig contract with Saipem SpA for a National 110 UE (1500 HP) traditional rig. The rig is currently being prepared for mobilisation from Mauritania, which is expected to begin later this month.
Under the FMA Schlumberger has agreed to fund 80% of the capital expenditure of the first Tendrara appraisal well, with Sound Energy only being required to fund 20%. The first well, located some 2.4Km North East of the previously successfully drilled TE5 well, is expected to cost approximately £9.2 million (100%).
James Parsons, Sound Energy's Chief Executive Officer, commented:
"We expect our first Moroccan well to demonstrate that we can secure commercial flow rates at Tendrara whilst also proving up further significant volumes. This will be a critical well for both Sound Energy and the whole of Eastern Morocco, which is rapidly attracting interest from across the sector.
We are delighted to be working so closely with a world class partner such as Schlumberger, and look forward to updating the market on progress."
For further information please contact:
Vigo Communications - PR Adviser
Tel: 44 (0)20 7016 9573
James Parsons, Chief Executive Officer
Smith & Williamson - Nominated Adviser
Tel: 44 (0)20 7131 4000
Cantor Fitzgerald Europe - Broker
Tel: 44 (0)20 7894 8896