21 August 2018
Sound Energy plc
("Sound Energy" or the "Company")
Completion of Seismic reveals new Palaeozoic Structure and finalises TE-10 location
Sound Energy, the Moroccan focused upstream gas company, is pleased to announce completion of the entire 2,850 line Kilometre 2D seismic acquisition programme in Eastern Morocco. This programme adhered to 'best in class' international safety standards throughout and has been completed on budget and with zero lost time incidents.
The Company also announces that it has finalised the specific location of the TE-10 exploration well, which will target the North East Lakbir prospect and is expected to spud immediately after the drilling of TE-9. This second well will target a high impact TAGI structural-stratigraphic play with previously advised estimated volumes of 2.6 Tcf mid case, GOIP (5.0 Tcf GOIP upside case and a 1.2 Tcf GOIP low case) and will drill both the TAGI and the underlying Palaeozoic.
The acquisition of the new seismic coupled with the Basin Modelling has enabled the Company to increase its understanding of the TAGI structural play, the deeper Palaeozoic potential and the hydrocarbon charge model. The Company continues to believe that the gas charge originates from a carbonate rich marine source rocks, interpreted as of Devonian age in a kitchen area in the central and southern region of the combined Tendrara-Lakbir, Matarka and Anoual permits.
The new seismic has also now revealed, in addition to the existing structures targeted by the planned wells, a new large Palaeozoic structure to the North West of the structural-stratigraphic play. It is believed that the hydrocarbon migration pathways converge into this Palaeozoic structure (essentially a palaeo-high onto which the TAGI reservoir pinches out) which, if correct, could be the largest prospect within the entire basin. The Company will include this opportunity as another candidate for the planned third exploration well (TE-11), alongside the significant Palaeozoic oil play in the Anoual licence.
For further information please contact:
Vigo Communications - PR Adviser
Tel: 44 (0)20 7390 0230
James Parsons, Chief Executive Officer
Smith & Williamson - Nominated Adviser
Tel: 44 (0)20 7131 4000
RBC Capital Markets - Joint Broker
Tel: 44 (0)20 7653 4000
Macquarie Capital (Europe) Limited - Joint Broker
Tel: 44 (0)20 3031 2000
The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
The information contained in this announcement has been reviewed by Sound Energy's Exploration Director, Brian Mitchener, a chartered petroleum geologist. The estimated volumes are made in accordance with SPE standards. Tcf means trillion standard cubic feet of gas.