14th Mar 2016 08:32
LONDON (Alliance News) - Sound Energy PLC Monday said it has had to restrict the amount of gas being produced from one of its assets in Italy, but said it will soon be able to begin drilling on another permit in the country once it has secured the last necessary approval.
Sound began producing gas from the Nervesa licence in early February and has produced a total of 24.6 million standard cubic feet of gas since then at an average production rate of 700,000 standard cubic feet each day.
However, the company said it has had to reduce production down to 400,000 standard cubic feet per day after static and dynamic profiles showed the pressure within the well had fallen and revealed the well was producing a minor amount of water, suggesting not all the perforated levels are yet in production, it said.
"After a further period of production at these levels, the company will complete a second static profile to confirm the level of pressure support. The company may then consider re-perforating select layers of the reservoir or installing a velocity string to facilitate the load up of the minor amount of liquid being produced," said the company.
On a more positive note, Sound said it has been advised that the "central and final" meeting with authorities in Italy will be held on March 21, when it hopes to secure the last approval needed to begin drilling the Badile permit, also in Italy.
In addition, the civil works and camp construction on the Tendrara site in Morocco are "progressing well," and the rig has arrived ahead of drilling operations. The company said equipment is currently being unloaded on site and the 40-day drill programme will begin in April.
Sound shares were down 3.7% to 15.77 pence per share on Monday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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