Morocco Driller Reports Bigger Loss
UK-based Mediterranean-focused independent Sound Energy, now drilling its first well onshore Morocco on the Tendrara prospect, reported a net full year 2015 loss of £18.6mn on May 24, compared to a £4.8mn loss in 2014; it had a cash balance of £15.2mn at end-2015.
CEO James Parsons said: “We move into a very busy 2016 in a very robust position, looking to generate value through the drill bit and pursuing selective opportunities to complement our portfolio. We are now just a few weeks away from the result at our first strategic play."
The 14,500 km2 Tendrara permit is located in northeast Morocco, 120 km from the GME pipeline that links Algeria to Iberia. Sound said May 24 that its first Tendrara well has now been drilled to the third and final casing point at 2475 metres depth and that it has started the operation to set and cement the 7-inch casing in the shale formation just 50 metres above the final target depth.
Including two wells drilled by Eni in 1966-67, seven wells have been drilled at Tendrara, of which five gas-bearing, with 2 of those successfully drilled – one peaking at 5.5mn ft3/d. Schlumberger is now funding most of the three current Tendrara wells while Sound retains a 27.5% interest in the licence.
Sound also has an option to acquire a 55% interest in the Meridja permit, next to Tendrara.
It also has a heads of terms at Sidi Moktar licences also onshore Morocco which, if completed, would provide a carry on all costs whilst only reducing Sound Energy's position to a 25% operated interest.
In northern Italy, the company received final permission from Italian authorities to drill onshore at Badile. Its two existing small producing onshore gasfields (Rapagnano and Nervesa) in Italy each produce 0.4mn ft3/d. Sound said recent exploration at Nervesa had been “disappointing”.
Sound said its current immediate focus is now on Tendrara and Sidi Moktar in Morocco, and Badile in Italy.
Mark Smedley