LONDON (Alliance News) - Upstream gas company Sound Energy PLC said on Thursday it has been awarded a production concession for the Tendrara gas discovery in Morocco by the Ministry of Energy.
The production concession award covers an area of 133.5 square kilometres following an application made by the company in June.
The field development plan will start the drilling of up to five new horizontal wells, as well as the re-completion of the existing TE-6 and TE-7 wells.
Then there will be a construction of a gas treatment plant and compression station and a 120 kilometres, 20-inch Tendrara Gas Export Pipeline connecting the station and the delivery point to the Gazdouc Maghreb Europe pipeline.
First gas is expected to be achieved in two years at a mid case production rate of 60 million standard cubic feet per day over a period of ten years minimum, during which an additional 10 to 13 wells will be drilled to maintain the production rate.
A final investment decision will be reached once key development milestones have been secured, including a gas sales agreement, secured funding for front end engineering design and regulatory formalities.
"I am delighted with the award of the first development concession in Eastern Morocco, which is a critical step in commercialising our gas discovery. The company continues to make excellent progress on all fronts, including FEED, the gas sales agreement and ground works at TE-9," said Chief Executive Officer James Parsons.
Shares in Sound Energy were up 1.3% at 40.55 pence on Thursday.
Sound Energy (SOU)