The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
Hi ****
Wishing you all the best for the festive season.
There are many thinly bedded sands within the gas bearing interval.
We are still acquiring wireline log data. We have MDT and sidewall core data and sample still to acquire. Plus, we are still in the process of processing and integrating the data from the other wireline logging data acquisition runs. Some of these analyses will take some time to complete. As a consequence, the evaluation of the net pay may be revised as we receive more data.
Thanks and regards,
Sarah
Sound Energy, the Moroccan focused upstream gas company, announces the preliminary results of intermediate wireline logs at TE-10, which indicate the presence of gas bearing sands in the TAGI.
James Parsons, Chief Executive Officer of Sound Energy, commented:
"These positive initial results underscore our confidence in the exploration potential across the broader basin. We will now finalise the logging, drill to TD and then test the well to better understand the scale of the discovery and seek to confirm commercial flow rates."
The Company is part way through its three well exploration programme in the Tendrara area designed to explore three geologically-independent plays and to establish the potential of the basin. TE-10, the second well in the programme, was designed to target both a material TAGI stratigraphic trap and a smaller TAGI structural closure in the Company's Greater Tendrara permit. The well is located approximately 25 kilometres to the northeast of the recently awarded Tendrara production concession, which contains the TE-5 Horst discovery unlocked by Sound Energy in 2016-17.
The TE-10 well has, so far, been drilled to 2,098.5m total measured depth, penetrating the top of the TAGI sand sequence at a measured depth ("MD") of approximately 1,892m.
Based on cuttings and the results of preliminary wireline interpretation, there is a potential gross reservoir interval from 1,899m MD to 2,009m MD. Gas shows greater than background levels were observed from 1,908m to approximately 2,030m MD and included a range of C1 to C5 hydrocarbons. Preliminary interpretation of the intermediate wireline log data currently acquired indicates thinly bedded gas bearing intervals within the gross section, with initial estimates of net pay (based on various conservative assumptions) of up to 10.5m and an average porosity of 8% (a similar porosity to previous productive wells in the Company's existing discovery). Wireline logging is ongoing, including the planned acquisition of side wall cores and the use of a modular formation dynamics tester system (MDT) to gather samples (rock and fluid) and pressure data which will assist in potentially increasing the net pay estimate.
After completion of the intermediate logging programme, the Company plans to drill the remaining TAGI section to total depth just beneath the Hercynian Unconformity and then perform a well test, including possible mechanical stimulation. The Company will also initiate seismic analysis to establish the Company's internal estimated gas resources of the structural closure and the upside potential of the North East Lakbir stratigraphic trap.
Ground works for the drilling of TE-11, the third well in the exploration programme, are expected to commence after the TE-10 well test.
The Company remains well funded with unaudited cash balances as at 14 December 2018 of US$27 million.
I wrote to Sarah yesterday after the call to get clarity on why Progressive Research are using this number in their calculations. She came back just now with an update - see below...
Sarah
Why have Progressive Research used $8.9/mcf for their calculations as opposed to Sounds internal number of $8/mcf?
Hi ****
Double checked it’s reflective of current prices we and Progressive have been seeing in the market recently.(Algeria included)
Best regards,
Sarah
Mike see if this works - only down side is that they have already used $8.9/MCF, so less upside than the $8 we've been using
https://www.soundenergyplc.com/media/1594/exciting-times-ahead.pdf
https://t.co/5Rw2IBZNtQ
I'd love to know what they are. Been coming through daily for about 3 weeks now. Mostly on the sell side but some on the buy too. Almost as if someone is drip feeding sells in at 5k to hide a larger sell. Marco's continental investors perhaps?
Eastern Morocco : TE-9 Second Casing Point (RNS Reach)
Sound Energy, the Moroccan focused upstream gas company, is pleased to confirm that the first well in the current three exploration well programme, TE-9, has now been drilled to the second casing point at a measured depth ("MD") of 2210 metres and that the 9 5/8" casing has been set and cemented in the Triassic shales above the prognosed TAGI reservoir.
The Company looks forward to updating investors on the achievement of total depth. Further announcements will be made, as appropriate, in due course.
Eastern Morocco : TE-9 First Casing Point
Sound Energy, the Moroccan focused upstream gas company, is pleased to confirm that the first well in the current three exploration well programme, TE-9, has now been drilled to the first casing point at a measured depth ("MD") of 352 metres and that the 13 3/8" casing has been set and cemented in the top of a series of Middle Jurassic Dolomite and Limestones. The Company will now proceed to drill towards the second casing point at an MD of approximately 2300 metres.
The Company looks forward to updating investors on achievement of each of the second casing point (9 5/8" casing), the setting of a 7" liner (if required) and achievement of total depth.
The Company also confirms the fourth quarter investor presentation is now available on its website.
Sound Energy, the Moroccan focused upstream gas company, is pleased to confirm that the drilling at TE-9, the first well of a planned three exploration well campaign in Eastern Morocco, is intended to commence later today.
The TE-9 well will test the A1 prospect in the Company's Greater Tendrara permit and is located approximately 19 kilometres to the northwest of the recently awarded Tendrara production concession.
The TE-9 main well bore will be drilled and logged to a true vertical depth of approximately 3,022 metres, is intended to drill both the TAGI as the primary target and the underlying Paleozoic as the secondary target and is expected to take between 35 to 45 days.
The Company looks forward to updating investors on achievement of each of two casing points (13 3/8" casing and 9 5/8" casing), the setting of a 7" liner (if required) and achievement of total depth. Investors will be able to observe live operations through the Company's webcam, available on the Company's website.
Further announcements will be made, as appropriate, in due course.