Continental Focus, International Reach

Sound Outlines Tendrara/Meridja Plans

Monday, February 6, 2017

Sound Energy provided an early stage estimate of the exploration potential of its Tendrara and Meridja permit areas in Morocco. The company recently commissioned a preliminary basin modelling study from a leading independent consultancy.

Following receipt of the basin model, the company’s internally estimated volumes for the exploration potential of the entire Tendrara and Meridja permit areas are 17 Tcf mid-case unrisked original gas in place (gross). The basin model highlights the possibility for a range of estimated volumes across the entire Tendrara and Meridja permit areas, with a 9 Tcf low case for unrisked original gas in place (gross) and, if all the key elements of the petroleum system’s model are present, an upside case of 31 Tcf of unrisked original gas in place (gross).

The basin model indicates that there is sufficient gas available to charge the existing Triassic TAGI prospects and leads and the yet to be explored Paleozoic.

Sound’s first two wells have resulted in an estimated 300 to 500 Bcf of gas in place. Further exploration activity, including the acquisition of additional 2D and 3D seismic and further drilling, will be required to substantiate the estimated exploration potential of the Basin. The company’s estimates will be subject to a Competent Person’s Report to be commissioned following the drilling of TE-8 and before Sound takes FID on the development later in 2017.

The 2017 Tendrara / Meridja work program will therefore be focused on accelerating the exploration activity to unlock the ultimate potential of the basin and advancing preparations to early first gas. The company’s 2017 Moroccan work program will include the ongoing reprocessing of the existing 3D seismic to further reduce the range of uncertainty over the Tendara-Lakbir horst.Drilling of a bold Tendrara step-out well, TE-8, in February 2017 (with a contingent sidetrack) to increase, in a success case, the estimated volumes for original gas in place at Tendrara from 300-500 Bcf (gross) to upto 1.5Tcf of original gas in place.

Preparation of the field development plan, which includes the finalization of the commercial agreements for gas sales and associated infrastructure, right-sizing of the facilities / pipeline and the optimization of the well design and spacing. The company also plans to acquire airborne gradiometry immediately to delineate the basin geometry and enhance the understanding of the Paleozoic potential.

Reprocessing of historical 2D seismic and acquisition of new 2D seismic to determine the extent and volume potential to the North East of the Tendrara discovery will also be carried out. The acquisition of new seismic and gradiometry, which are not a commitment on the Tendrara license, are conditional on a Tendrara license time extension which is currently under discussion with the Moroccan authorities.

The company also plans to reenter multiple older wells drilled by previous operators (including TE-1 and TE-2) to test the upside potential of the Triassic play and also explore potential disposal options for the associated CO2 expected from the reservoir. This activity is also conditional on the license extension described immediately above.


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