19 November 2018
Sound Energy plc
("Sound Energy" or the "Company")
Eastern Morocco : TE-9 Results
Sound Energy, the Moroccan focused upstream gas company, announces the results of the TE-9 wireline log interpretation. TE-9 is the first of a three well programme to explore three non-related play concepts in the Tendrara area.
The TE-9 well was drilled to a total measured depth of 2925m and penetrated both the TAGI primary target and the Paleozoic secondary target. Interpretation of the wireline logs has not established the presence of producible gas, and hence the well will be plugged and abandoned, and not tested.
The well encountered 60m of dolomitized silty sandstone, interpreted as an age equivalent to the primary target TAGI sandstone. The petrophysical analysis of the wireline data indicates the interval is of low porosity and therefore poor reservoir quality.
The well also encountered approximately 630m of a Westphalian aged succession of fine sandstones siltstones and mudstones. The petrophysical analysis of the wireline data indicates the interval is again of low porosity and therefore poor reservoir quality. However, the core of the secondary Paleozoic seismic target remains untested as TE-9 appears to have been on the downdip limit of the large Paleozoic closure.
Drill gas readings in both the TAGI and Paleozoic intervals showed a range of C1 to C5 hydrocarbons, which the Company believes is further evidence of a working petroleum system. All data from the well are subject to ongoing analysis, which also includes other rock and drill gas samples recovered during operations, that will provide further valuable data to derisk the prospectivity of the wider permit area.
The Company will now plug and abandon the well and move directly to the TE-10 surface location, which is ready. TE-10 will target a TAGI structural-stratigraphic play with previously advised estimated volumes of 2.6 Tcf mid case gross gas originally in place ("GOIP") (5.0 Tcf GOIP gross upside case and a 1.2 Tcf GOIP gross low case) and will now reach total depth 50m into the underlying Palaeozoic.
The Company remains well funded with unaudited cash balances as at 14 November 2018 of more than US$30 million.
The Company confirms that preparation for the Final Investment Decision (FID) for the TE-5 discovery continue as planned, with Front End Engineering Design (FEED) conducted and paid for by the Enagas consortium due to complete around the end of 2018.
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 - 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.