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Area:
14,500 km2

Status:
permit

Effective
date:
01 October 2018

Term:
8 years

A prospective resource with multiple tcf potential

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Overview

Area: 14,500 km 2

Status: Permit

Effective date: 01 October 2018

Term: 8 years

Interest:

  • Net effective interest of 47.5%

Highlights

  • TE-6 Vertical well, 28m net pay, flow achieved pre stimulation, 17 mmscf/d achieved post-stimulation
  • TE-7 Horizontal well,  32 mmscf/d after clean up: Successful Extended Well test
  • TE-8 Step out appraisal well completed
  • Resources certification by RPS Energy Consultants Limited completed January 2018 confirms mid-case GOIP of 0.65 Tcf (TE-5 Horst alone)
  • Second TAGI discovery at TE-10 (non- commercial post testing)  

Permit Area

  • Figuig Province, North-East Morocco
  • 120 km from Gazoduc Maghreb Europe (GME) pipeline (connecting Algeria and Morocco to the Spanish/Portuguese gas grids)
  • Sub-divided into eight blocks
  • Combined area of 14,500 km2.

Geology

  • Represents a continuity of the Algerian Triassic Province and Saharan Hercynian platform
  • Proven gas play in the Triassic ’tagi’ reservoir with significant upside potential
  • Exploration programme to unlock potential of Depper Palaeozoic reservoirs

Partnerships

  • Sound Energy farmed in to the Tendrara licence in June 2015, taking a 55% working interest in the licence, partnering ONHYM (25% interest) and Oil & Gas Investment Fund (“OGIF”) (20% interest) and assuming Operatorship
  • December 2015, Sound entered into a Field Management Agreement (FMA) with Schlumberger. Schlumberger agreed to fund a significant portion of the capital expenditure on the first three Tendrara wells and provide technical services, equipment and personnel to Sound Energy as Operator in exchange for an upside linked to production performance.
  • In 2017 Schlumberger farmed into 27.5% of the Anoual permit by fully funding the exploration programme including an airborne ftg & magnetic survey, 2d seismic & mt/dtem surveying across the Anoual, Tendrara and Matarka permits.

Oil and Gas Investment Fund

  • February 2017, Sound Energy entered into binding agreements with Oil & Gas Investment Fund S.A.S. (“OGIF”) for the conditional acquisition by the Company of a further 20 % interest in the Company’s Tendrara exploration permits and an application and/or rights to apply for a 75 % position in certain relinquished area(s) of the Tendrara exploration permit areas. These agreements were approved by Sound Energy shareholders at a general meeting in March 2017.

Well Results

  • First well (TE-6): During the first half of 2016, the first Tendrara well, TE-6, was drilled to a measured vertical depth of 2,665 metres and successfully encountered approximately 28 metres of net gas pay in the TAGI reservoir. Flow was achieved pre-stimulation and, post-stimulation, a rate of 17 MMscf/d was achieved. This highly commercial rate was significantly above initial expectations.
  • Second well (TE-7): 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. A gas flow rate was achieved, post stimulation and clean up, of 32 MMscf/d. This rate was significantly above the Company’s pre-drill expectations. In January 2017, a successful extended well test was completed. The extended test results are consistent with the Company’s estimates and confirm the good deliverability of the TAGI reservoir, the horizontal well concept and the Company’s view of the significant potential of the field.
  • Third well (TE-8): Drilling commenced at this well on 19 February 2017 and completed in April 2017 with gas shows in the TAGI reservoir and deeper Paleozoic. This was an exploration / appraisal well some 12 kilometres to the Northeast of TE-7.
  • Fourth Well: (TE-9) commenced drilling in October 2018 and completed in November 2018. The well was drilled to a total measured depth of 2925m and penetrated both the TAGI primary target and the Paleozoic secondary target.
  • Fifth Well: (TE-10) commenced drilling and completed in December 2018. The well was drilled to a total measured depth of 2218m and penetrated the TAGI primary target encountering elevated gas shows whilst drilling and recovering gas to surface from an MDT.  The well did not achieved commercial flow rates following the stimulated well test undertaken with Sound Energy's partner, Schlumberger during May 2019.

Upside potential

Our Basin Model predicts the presence of sufficient gas charge available to fill the high graded TAGI prospects, predominantly generated from a carbonate rich marine source rock, attributed to the regionally significant Devonian succession. The model gives us our internal view of the estimated volumes for the exploration potential, expressed as unrisked gross gas originally in place, of a low case of 7 Tcf, a mid-case of 20 Tcf and a high case of 34 Tcf.

 

Future focus

The forward Tendrara / Anoual work programme is focused on accelerating the exploration activity to unlock the ultimate potential of the Basin and advancing preparations to early first gas and will include:

  • Completion of the ongoing reprocessing of the existing 2D and 3D seismic to further reduce the range of uncertainty over the Tendara-Lakbir horst.
  • Preparation of the field development plan.
  • Potential re-entry of multiple older wells drilled by previous operators (including TE-1 and TE-2).
  • Acquisition of an airborne gradiometry survey to delineate the Basin geometry and enhance the understanding of the Paleozoic potential (survey now complete and processing has commenced).

TE-6

  • 28m net pay, 17 mmscf/d achieved post-stimulation

TE-7

  • 32 mmscf/d after clean up: Successful Extended Well Test

Read more in Future Focus

TE-8

  • Paleozoic Play Opener and Extension of TAGI Reservoir. Detailed evaluation underway.

TE-9

  • Drilling completed in November 2018.
  • Dry hole.

TE-10

  • Drilling completed in January 2019.
  • Second TAGI discovery.
  • 10.5m net pay (upward revision Feb 2019 to 15.4m - high case)
  • Testing completed May 2019- (Non-commercial)  

Assets overview

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