LONDON (Alliance News) - Sound Energy PLC Monday said it will shut-in its new well on the Nervesa licence as it believes some of the reservoir levels are not in production, adding its first well on the Tendrara licence has reached its second casing point.
Sound began producing from Nervesa back in February but had to restrain the production of gas because of falling pressure within the well, which was also producing small amounts of water.
Following further testing, Sound Energy confirmed the reservoir pressure has continued to fall, meaning not all of the completed reservoir levels are in production. Sound Energy will now shut-in the well "early next month" so it can draw up a plan to re-perforate selected layers of the reservoir.
Sound Energy said it will also look at the possibility of a potential up-dip sidetrack of the well.
Within a reservoir that is not flat and varies in depth, the gas is up-dip, the gas-oil contact is down-dip from the gas, and the oil-water contact is still farther down-dip.
The well was producing around 700,000 standard cubic feet of gas per day when it was originally drilled, but quickly fell to 400,000 standard cubic feet per day due to pressure problems, with the news Monday suggesting production levels have dropped further since then.
At the Tendrara licence in Morocco, the first well has been drilled to the second casing point at a measured vertical depth of 1,316 metres, where it is setting and cementing a 9 5/8 inch casing in the Lower Liassic Anhydrite formation.
Sound Energy began drilling the well on April 20, and the company said it would take around 80 days in total to complete - suggesting the well should be finished in the first week of June.
Sound Energy shares were down 8.1% to 15.62 pence per share on Monday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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