Sound Energy starts work on Tendrara licence

(ShareCast News) - AIM-listed upstream gas company Sound Energy has begun ground works at the Tendrara licence area in Morocco and all contracts have now been awarded for the first well.The works include the upgrading of local infrastructure, which will be followed by the preparation of the camp and the two well pad areas.Sound Energy also confirmed that, further to the field management agreement it entered into with Schlumberger, all contracts associated with the drilling of the first appraisal well at Tendrara have now been awarded.Under the FMA, Schlumberger has agreed to fund 80% of the capital expenditure of the first Tendrara appraisal well, which is located around 2.4km North East of the previously successfully drilled TE5 well, and is expected to cost approximately £9.2m.Chief executive officer James Parsons said: "We expect our first Moroccan well to demonstrate that we can secure commercial flow rates at Tendrara whilst also proving up further significant volumes."This will be a critical well for both Sound Energy and the whole of Eastern Morocco, which is rapidly attracting interest from across the sector."At 0956 GMT, Sound Energy shares were up 2.9% to 17.49p.