Sound Energy mulls disposal of Moroccan acreage

Exploration group Sound Energy revealed on Wednesday that it was considering offloading its Moroccan operations following yet another well disappointment.

While Sound Energy assured investors that results from its TE-10 well did not diminish the overall assessment of its Eastern Morocco acreage, the group was now considering whether or not a sale of the East Morocco acreage would be a preferred option ahead of the final investment decision for the Tendrara TE-5 production area.

The AIM-listed group noted that after five wells it still saw several high impact plays in the region, including the TE-5 discovery and production concession, but chose to suspended plans to drill the TE-11 well as it advances a marketing exercise.

Chief executive 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."

As of 0930 BST, Sound Energy shares had shot up 9.35% to 11.70p.