24 November 2016

Sound Energy plc

("Sound Energy" or the "Company")

Tendrara: TE-7 Post Stimulation Flow Rate

Sound Energy, the European and African focused upstream gas company, is pleased to confirm a successful second well at the Company's Tendrara licence, onshore Morocco.

As announced by the Company on 7 October 2016, the Company's second Tendrara well (TE-7) was drilled successfully to a total measured depth of 3,459 metres, corresponding to a vertical depth of 2,611 metres.  TE-7 has a total contact length through the TAGI reservoir of some 837 metres, including a 700 metres sub-horizontal section.

The Company has now completed operations and is pleased to announce that it has achieved a gas flow rate towards the end of the clean up process, post stimulation, of 32 MMscf/d with a flowing tubing head pressure of 230 bar on a choke of 40/64. This rate is significantly above the Company's pre-drill expectations.  Based on the clean up phase, the well's potential is predicted by the Company to be significantly above 40 MMscf/d with a 50% drawdown. 

The Company will now proceed with the planned extended well test of TE-7 to confirm production sustainability and to aid comprehensive field development planning. The TE-7 bottom hole reservoir pressure and its correlation with the gas gradient of the other Tendrara wells will be announced after conclusion of the the extended well test.

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

James Parsons, Chief Executive Officer of Sound Energy, commented:

"I am pleased to report the success of our second well at Tendrara and that the use of sub-horizontal drilling techniques on TE-7 has delivered a significant uplift on flow rates.  This result further re-inforces our belief in the Eastern Morocco TAGI / Palaeozoic play.

My team and I look forward to the results of the extended well test and the finalization of plans for our first outpost well, TE-8."

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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/d means million standard cubic feet of gas per day.