Sound Energy considers selling operations in eastern Morocco

Sound Energy considers selling operations in eastern Morocco

Sound Energy, the Moroccan focused upstream gas company, said a sale of the East Morocco operations would be a preferred option ahead of the final investment decision for the well TE-5 production area.

The East Morocco operation comprises three areas – Tendrara, Greater Tendrara and the Anoual Permit.

In August 2018, Sound Energy signed an eight-year petroleum agreement that pulled together the Tendrara and Matarka exploration areas into one license and also brought long-term partner Schlumberger in with a direct interest.

Sound holds 47.5% of the area, alongside Schlumberger, which has a 27.5% direct interest and the state’s oil and gas authority ONHYM, which retains a 25% stake.

This deal also united Greater Tendrara, the Anoual permit and TPE, the 25-year production concession for the Tendrara TE-5 gas discovery.

Recent exploration has already seen Sound hit substantial additional quantities of gas at Tendrara through the TE-6 and TE-7 wells.

However, the company reported that the A1 prospect 19km from Tendrara was disappointing, while the TE-9 and TE-10 wells proved uncommercial with further exploration suspended while the company reviews its options.

As of 14 May 2019, the company had a cash balance of over £11mln, while losses for 2018 were £11.75mln, a slight reduction on the previous year.

“Whilst clearly disappointed with the outcome of the recent well test at TE-10, the team and I are encouraged to have delivered gas to surface from another TAGI discovery and remain confident in the potential of our Eastern Morocco basin,” James Parsons, Chief Executive Officer, said.

Share This