11th Jul 2016 07:03
LONDON (Alliance News) - Sound Energy PLC Monday said the first well that was drilled on the Tendrara licence onshore Morocco has flowed gas at a higher-than-expected rate despite only accessing a small proportion of the reservoir.
The TE-6 well was drilled in early June and encountered 28.0 metres of net gas pay in the TAGI reservoir, but operations are ongoing and the full results are expected to be released "later this month".
"The company confirms that rigless operations continue and that the results are already significantly above company expectations as a significant stable flow has already been achieved, despite only having accessed so far 18% of the total reservoir and no stimulation having yet been performed," said Sound.
After completing an initial perforation of 5.0 metres of the 28.0 metre net pay, the well has achieved a stable flow rate of 1.36 million standard cubic feet of gas.
"We eagerly await the post stimulation flow rate but I believe the early results of this first well already both prove a material commercial rate at Tendrara and provide significant early clues as to the regional potential of the Eastern Morocco TAGI reservoir," said Chief Executive James Parsons.
Sound shares were up 5.3% to 25.40 pence per share on Monday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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