15th Feb 2016 09:53
LONDON (Alliance News) - Sound Energy PLC Monday said it has awarded all of the necessary contracts for the first well to be drilled on the Tendrara licence area in Morocco.
Sound Energy signed a field management agreement with oilfield services giant Schlumberger late last year, and on Monday said it has now awarded all the other contracts needed for the first well to be drilled on the licence.
The contracts awarded include a binding rig contract with Saipem SpA for a National 110 UE traditional rig. The rig is currently being prepared for mobilisation from Mauritania, which is expected to begin later this month.
In the meantime, civil works have started on site - including the upgrading of local infrastructure which will be followed by the preparation of the camp and the two well pad areas.
Schlumberger is funding 80% of the costs of the first well on Tendrara under that agreement signed last year, with Sound Energy paying the other 20% of costs. The total cost of the well is expected to be around GBP9.2 million.
"We expect our first Moroccan well to demonstrate that we can secure commercial flow rates at Tendrara whilst also proving up further significant volumes. This will be a critical well for both Sound Energy and the whole of Eastern Morocco, which is rapidly attracting interest from across the sector," said Chief Executive James Parsons.
"We are delighted to be working so closely with a world class partner such as Schlumberger, and look forward to updating the market on progress," he added.
Sound Energy shares were up 2.9% to 17.49 pence per share on Monday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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