RNS28 Jan 2019 07:06
TIDMSOU
RNS Number : 2015O
Sound Energy PLC
28 January 2019
28 January 2019
Sound Energy plc
("Sound Energy" or the "Company")
Eastern Morocco Operations Update
Sound Energy, the Moroccan focused upstream gas company, is pleased to provide a further update on operations in Eastern Morocco, following the Company's announcements of 27 December 2018 and 7 January 2019. The Company previously announced a discovery, and the initiation of planning for testing including possible stimulation, at TE-10, the second well in Sound Energy's current three well exploration programme in the Tendrara area, onshore Morocco.
As previously announced, preliminary TE-10 wireline logging results identified a potential TAGI gross reservoir sequence from 1,899m measured depth ("MD") to 2,009m MD, an initial net pay estimate of up to 10.5m and gas bearing sands beneath the mapped TAGI structural closure. Gas was also successfully recovered to surface with a modular formation dynamics tester system, confirming the presence of moveable hydrocarbons in the reservoir.
Rig Demobilisation
The rig at TE-10 has now been demobilised and is stacked at the TE-10 rig site on a reduced standby rate, awaiting drilling of the next, and final, well in Sound Energy's current exploration programme, TE-11.
TE-10 Net Pay Estimate and Analytical Programme
The Company announced on 7 January 2019 that the FMI (high definition formation micro-imager log), which provides a microresistivity image of the well bore at a much finer resolution than the initial logging suite, had potentially identified the presence of additional thin bedded net pay within the previously identified potential gross reservoir interval between 1,899m MD to 2,009m MD. The Company now confirms that the FMI identified both the presence of fractures and the previously announced potential additional thin bedded net pay.
A total of 57 side wall core samples have been successfully cut and shipped out of Morocco and are now being analysed by ALS Ltd in the UK. Preliminary analyses of a sample subset show permeabilities within the range observed in the TE-5 Horst area.
Sound Energy's initial, and previously announced, net pay estimates of up to 10.5m are now being revised likely upwards, integrating the wireline data with the on-going analyses of the side wall core. The Company expects to be able to confirm a revised net pay estimate in mid-February 2019.
TE-10 Continued de-risking of the Stratigraphic Play
The North East Lakbir stratigraphic trap, the most material of TE-10's two targets, had pre-drill mid case potential on a gross (100%) basis of 2.7 Tcf gas originally in place ("GOIP") (4.5 Tcf GOIP upside case and a 1.5 Tcf GOIP low case). Following the acquisition of the VSP (vertical seismic profile) at TE-10, the Company previously confirmed that the gas shows observed during drilling extended below the currently mapped structural clos