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.