LONDON (Alliance News) - Sound Energy PLC on Monday said it has significantly raised its net pay estimates for its TW-10 well in onshore Morocco after analysis.
Shares in Sound Energy were up 5.4% at 26.15 pence on Monday morning.
The upstream gas company upped its net pay estimates to 15.5 metres from 10.5 metres, an increase of 48%, with a mid case of 13.1 metres and a low case of 9.5 metres.
Back in January, the upstream gas company announced that work at TW-10 had likely found "additional thin bedded net pay" within the TR-10 gas reservoir.
Sound Energy also said assessment of the North East Lakbir structural-stratigraphic closure found, on a gross basis, a mid-case potential of 1.430 trillion cubic feet of gas originally in place, with a 3.408 trillion cubic feet of gas originally in place upside case. The low case potential is for 584 billion cubic feet of gas originally in place.
"As is always the case with new discoveries, a further reduction in this range of volume uncertainty will require appraisal drilling," said Sound Energy.
The volume range in the structural closure alone has been assessed with a mid-case potential of 81 billion cubic feet of gas originally in place on a gross basis, with a 170 billion cubic feet upside case and 30 billion cubic feet low case.
"We set out last year to deliver an ambitious three well exploration programme to further unlock the Tendrara Basin and our second well (TE-10) is a discovery," said Sound Energy Chief Executive James Parsons.
"Following our initial post drill technical analysis, we are delighted to materially upgrade our net pay and provide confirmation of the multi [trillion cubic feet] potential of this well. We now look forward to addressing reservoir deliverability and hence commerciality with the well test," Persons added.
Sound Energy currently expects the equipment needed for its TE-10 well testing to arrive and be rigged up for testing in four weeks. Unstimulated flow tests will be conducted from mid-March. Then, in late March, stimulated production flow tests will commence for a period of around 30 days.
"The company expects the initial post stimulation flow rate around end March," Sound Energy said.
Sound Energy (SOU)