LONDON (Alliance News) - Sound Energy PLC on Wednesday said it intends to pause operations in eastern Morocco and consider the disposal of its portfolio in this region.
The stock was up 9.1% in early trade on Wednesday at 11.68 pence a share.
The gas company on Tuesday had said its TE-10 gas discovery in Morocco had not achieved commercial flow rates, with the flow rate below the 1.5 million to 2.0 million standard cubic feet of gas per day commercial threshold.
On Wednesday, Sound Energy said "disappointing" well test does not diminish its overall assessment of its Eastern Morocco acreage which, following the drilling of five wells and interpretation of new seismic data, contains a number of high-impact plays, it said, including Tendrara production concession and the TE-5 Horst discovery.
However, the company said it has decided to market its Eastern Moroccan portfolio with a view to assessing a sale.
Sound Energy intends to pause further operations, including in relation to TE-11, the third well in the current exploration programme, until after the results of the marketing process.
"Should the board receive the right price for the company's East Morocco acreage, our intention would be to return the net proceeds of any divestment to Sound Energy shareholders in the most efficient manner possible," said Chief Executive James Parsons.
Sound Energy (SOU)