(ShareCast News) - Sound Energy said an early estimate of its Tendrara and Meridja permit areas in Morocco put unrisked original gas in place of up to 31trn cubic feet (tcf), or 17tcf as a mid case.
The AIM-listed company, which has a 27.5% interest in the Tendrara licence and an option to acquire a 55% interest in Meridja, last month conducted various tests and has now received an initial basin model, from which it made internal estimates of volumes.
It said the basin model "highlights the possibility" for a range of estimated volumes across the entire Tendrara and Meridja permit areas, with a 9tcf low case for unrisked original gas in place and, if all the key elements of the petroleum system's model are present, an upside gross case of 31tcf of unrisked original gas in place.
The company said basin model, from which the volume estimates above are derived, is supported by a mapped inventory of discoveries, prospects and leads in the Triassic reservoir; the volume of hydrocarbons generated, and available to charge, from the Paleozoic source rocks post deposition of the thick salt seal; and a conceptual evaluation of the Paleozoic resource potential by analogue to neighbouring Algerian basins.
It cautioned that, notwithstanding its internal estimates for the exploration potential of the basin, it has so far only completed the first two wells on the structure which have established an estimated gross 300-500bn of standard cubic feet of gas (Bscf).
"Further exploration activity, including the acquisition of additional 2D and 3D seismic and the requirement for further drilling, will be required to substantiate the estimated exploration potential of the Basin.
"The company's estimates will be subject to a Competent Person's Report to be commissioned following the drilling of TE-8 and before the company takes final investment decision on the development later in 2017."