Sound Energy, the Moroccan focused upstream gas company, is pleased to provide an update on its strategy and operations.
The announcement on 21 May, 2019 regarding the results of the TE-10 well test does not diminish Sound Energy's overall assessment of its Eastern Morocco acreage which, following the drilling of 5 wells and interpretation of new seismic data, all operated by the Company, contains a number of high impact plays including:
- Tendrara Production Concession and the TE-5 Horst discovery it contains, which is a candidate for a 66 million standard cubic feet per day mid case Final Investment Descision ("FID"); and
- additional exploration potential in the TAGI and Palaeozoic across multiple leads and prospects, which the Company has internally estimated to include an aggregate exploration potential of up to 20 trillion cubic feet (mid-case) of unrisked gross gas originally in place.
Eastern Morocco Monetisation
The Board believes it is now the right time to explore the monetisation options available to the Company in respect of its Eastern Moroccan portfolio and has decided, with support from Rothschild & Co, to market its Eastern Moroccan portfolio with a view to assessing a sale, prior to FID.
The Company 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.
Commenting on the strategic update, Sound Energy's CEO James Parsons said:
"We are now approaching the final stages of Sound Energy's strategy to drill a bold exploration programme in Morocco and then explore options for early monetisation. 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."