Sound Energy discusses 'exciting period' of development

Mediterranean upstream company Sound Energy outlined its plans for a new three-well drilling programme in Eastern Morocco on Wednesday, saying the firm was preparing for "another exciting period."

Sound Energy's Tendrara assets reportedly held an estimated 1trn cubic feet (tcf) of gas resources, however, the broader acreage was said to hold almost 17tcf, leading the company to accelerate its drill programme at "high impact" locations in order to unlock more of the areas contributing to the wider estimate.

"Sound Energy is now approaching another exciting period of back to back drilling in Eastern Morocco," said James Parsons, Sound Energy chief executive.

"The three well exploration programme we are announcing today has the potential to significantly increase the core value of our Moroccan acreage and to establish Eastern Morocco as a prolific but low-cost gas province, on the doorstep of large and growing energy markets," he added.

The project was set to kick off with a well on Sound Energy's "A structure," located roughly 25km north-west of Tendrara's TE-5 well, where the company said there was an estimated 400bn cubic feet to 1.2tcf.

The second new well would be erected 20km north-east of TE-5, at North East Lakbir and would be the largest target with estimates ranging between 1.2tcf and 5tcf, with a mid-case estimate of 2.6tcf.

Sound gave much less detail for the third target, describing it as "a Paleozoic test beneath the TE-5 Horst."

Each of the three wells in the programme were expected to cost around US$10m.

As of 1110 BST, shares had risen 1.38% to 55.25p.