19th Sep 2019 11:35
(Alliance News) - Sound Energy PLC on Thursday posted a more than trebled loss in the first half of 2019 after its TE-10 well in Morocco failed to achieve a commercial gas flow rate and was suspended.
Shares in Sound Energy were down 7.6% at 8.10 pence in London in late morning trade.
The Morocco-focused upstream gas company reported a pretax loss of GBP11.5 million in the six months to June 30, far wider than its GBP3.4 million loss a year before.
This was the result of a GBP6.5 million impairment charge against intangible assets, resulting from the decision to end the TE-10 well test at the Tendrara concession and suspend the well.
"The company remains confident in the potential of its eastern Moroccan portfolio which, following the drilling of five wells and the interpretation of new seismic data acquired by the company, continues to contain a number of high-impact opportunities and plays, including the existing Tendrara production concession and the TE-5 Horst discovery it contains and additional exploration potential in the TAGI and Palaeozoic formations across multiple leads and prospects," said Non-Executive Chair Simon Davies and Chief Executive James Parsons.
Administrative expenses held steady at GBP4.0 million from GBP4.1 million.
In June, Sound Energy raised USD3 million via an equity placing to strengthen its cash position. The chair and CEO said the company was "well positioned for the second half of 2019" as its cash balance at June 30 stood at GBP11.1 million.
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