Sound Bullish About East Morocco Play

UK-based Morocco gas explorer Sound Energy said May 23 it has almost doubled its in-house estimate of its deep level TAGI resource in eastern Morocco, based on its TE-8 well there.

Two months ago it said the TE-8 well had established that an Algerian geological play extends into eastern Morocco. Now it has said that sandstones at TE-8 have gas shows that are “likely to be producible with mechanical stimulation”; but the firm has yet to conduct any flow test on the well.

CEO James Parsons on May 23 said TE-8 was “the definitive Paleozoic play opener with thick Westphalian sands which should be producible across the region”; the gas-water contact was confirmed at 1,350 metres sub sea-level but the TAGI reservoir was “relatively tight.”

A final investment decision on initial development at Tendrara based on a ‘mid-case’ estimate of 0.63 trillion ft³ of gas originally in place is planned for end-2017. Sound said its ‘high case’ estimate is now 1.03 trillion ft³ and that “additional upside is possible.” The firm’s shares opened 8% above the previous day’s close, but since eased to 5% firmer.

Sound Energy's focus of Moroccan operations (Map credit: the company)

As it said May 17, the Saipem rig used to drill TE-8 has arrived on site at Sidi Moktar in western Morocco. After completing operations there, the rig will return to eastern Morocco. Sound also May 23 said it intends to appoint its executive vice president for exploration, Brian Mitchener, to its board soon.

Mark Smedley