11 October 2018
Sound Energy plc
("Sound Energy" or the "Company")
Statement re Share Price Movement and Operational Update
Sound Energy, the Moroccan focused upstream gas company, notes the recent movements in its share price, confirms that it knows of no operational or corporate reason for the movements and provides the following operational update on the Company's portfolio, onshore Morocco.
Eastern Morocco: TE-9 and TE-10
TE-9, the first well of a planned three exploration well campaign, will test the A1 prospect in the Company's Greater Tendrara permit. The well is an exploration well located approximately 19 kilometres to the northwest of the recently awarded Tendrara production concession and is intended to drill both the TAGI as the primary target and the underlying Paleozoic as the secondary target. On 4 June 2018 the Company announced the final results of a CPR on the TE-9 TAGI reservoir with a mid-case of 624 Bcf, a low-case of 278 Bcf and a high-case of 1254 Bcf (unrisked undiscovered Gas Originally in Place).
Ahead of drilling TE-9, the Company is pleased to report that the rig-up process is now complete and that preparations for rig acceptance are underway. Spudding of TE-9 is expected next week. The TE-9 main well bore will be drilled and logged to a true vertical depth ("TVD") of approximately 3,022 metres and is expected to take between 35 to 45 days. The Company looks forward to updating investors on achievement of each of two casing points (13 3/8" casing and 9 5/8" casing), the setting of a 7" liner (if required) and achievement of total depth. Investors will be able to observe live operations through the Company's webcam, available on the Company's website.
The Company also confirms that ground works at TE-10 have begun.
Eastern Morocco: Development
Following Ministerial meetings this week, the Company confirms that it continues to make strong progress in relation to a gas sales agreement. The Company has also this week hosted a senior team from the consortium conditionally providing the infrastructure and is pleased to confirm that the FEED and the BOOT negotiations are progressing well.
Eastern Morocco: Seismic
Final Phase I processed products were received in February followed by Phase II in July allowing the Company to define locations for TE-9 and TE-10 and interpret additional upside options in the deeper Palaeozoic. Processing of Phases III and IV is expected to complete this month, after which the Company will be in a position to select the location for TE-11 from the range of available options. TE-11 is expected to have a primary Palaeozoic target with a secondary target in the TAGI.
As announced on 5 June 2018 the Company initiated a farm out process for the Sidi Moktar onshore licence with the objective of funding the forward work programme whilst retaining operatorship and has subsequently shared technical data with multiple potentially interested parties. As a result of this the Company is now in discussion with a few remaining parties and will update the market in due course.
The Company looks forward to hosting investors on site next week and in the meantime is delighted to host a Fireside Chat with investors at 10am tomorrow.
Further announcements will be made, as appropriate, in due course.
For further information please contact:
Vigo Communications - PR Adviser
Tel: 44 (0)20 7390 0230
James Parsons, Chief Executive Officer
JJ Traynor, Chief Financial Officer
Smith & Williamson - Nominated Adviser
Tel: 44 (0)20 7131 4000
RBC Capital Markets - Broker
Tel: 44 (0)20 7653 4000
Macquarie Capital (Europe) Limited - Joint Broker
Tel: 44 (0)20 3037 2000
Bcf means billion standard cubic feet of gas.