14 March 2016

Sound Energy plc

("Sound Energy" or the "Company")

Operations Update

Sound Energy, the European/Mediterranean focused upstream gas company, provides the following update on certain of its Moroccan and Italian gas portfolio assets.

Badile, Italy

The Company has now been advised that the "Conferenza dei Servizi" (which is the central and final approval meeting for the Badile permission to drill) has been scheduled for 21 March 2016. This "Conferenza dei Servizi" follows an initial meeting held on 3 February 2016 and the final permission to drill the Badile exploration well is expected to be granted after this meeting.

Nervesa, Italy

The Company advises that since achieving first gas on 3 February 2016, the Company has produced some 24.6 MMscf of gas (at an average production rate, constrained by the Company, of 0.7 MMscf/d).  On 11 March 2016 the Company completed planned static and dynamic profiles, which have identified an initial reduction in well pressure with an associated minor production of water, and suggests that not all perforated levels are yet in production.  The Company has therefore decided to temporarily further constrain the flow rate from the well to approximately 0.4 MMscf/d.  After a further period of production at these levels, the Company will complete a second static profile to confirm the level of pressure support.  The Company may then consider re-perforating select layers of the reservoir or installing a velocity string to facilitate the load up of the minor amount of liquid being produced. 

Tendrara, Morocco

The Company is pleased to announce that civil works and camp construction on site are progressing well, that the rig has now (as scheduled) arrived in Morocco and that the unloading of the equipment has started on site.   The 40 day drill programme for the first Tendrara well is expected to commence in April 2016.

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The information contained in this announcement has been reviewed by Sound Energy's Moroccan Managing Director, Luca Madeddu, a qualified petroleum geologist.  MMscf means million standard cubic feet of gas and MMscf/d means million standard cubic feet of gas per day.