7 October 2016

Sound Energy plc

("Sound Energy" or the "Company")

Tendrara: TE-7 - Completion of Drilling and Log Results

Sound Energy, the European and African focused upstream gas company, is pleased to announce that TE-7, the second well at the Company's Tendrara licence (onshore Morocco), has now been successfully drilled to total measured depth of  3,459 metres corresponding to a vertical depth of 2,611 metres.  

The Company has successfully completed a 700 metre sub horizontal drill through the TAGI reservoir.  Consistent with those seen in the drilling of TE-6, the Company has observed significant gas shows from the TAGI sandstones. The Company currently estimates a total vertical net gas pay of approximately 28 metres (roughly the same as TE-6, on a vertical basis). The horizontal nature of the well will have significantly increased TE-7's surface area contact with the reservoir which is anticipated to significantly increase the well flow rate.

The well will now be completed with a 4-1/2" production tubing, after which the Company will proceed with rigless operations. An extended well test will follow the rigless operations for approximately 70 days to confirm production sustainability and to aid comprehensive field development planning.

As previously reported, the Company also intends to drill its first outpost well at Tendrara, TE-8, with the objective of both proving up significant additional volumes in the TAGI reservoir whilst also drilling, for the first time, the potentially transformational Paleozoic formation. Whilst the precise location is still under review and subject to regulatory and partner approvals, drilling of TE-8 is expected to commence early 2017.

This announcement is inside information for the purposes of article 7 of Regulation 596/2014.

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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.