Published: February 16, 2016 |

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Sound Energy shares nudged higher as it started ground works at its Tendrara licence area in Morocco with all contracts in place for its first well.

The contracts include a binding rig contract with Saipem for a National 110 UE (1500 HP) traditional rig.

The rig is currently being prepared for mobilization from Mauritania, which is expected to begin later this month.

Partner Schlumberger has agreed to fund 80 percent of this first well at Tendrara as part of a three well collaboration. 

The well, 2.4Km North East of the previously successfully drilled TE5 well, is expected to cost approximately £9.2mln (100 percent) with Sound to contribute 20 percent.

James Parsons, Sound Energy’s chief executive, said: “We expect our first Moroccan well to demonstrate that we can secure commercial flow rates at Tendrara whilst also proving up further significant volumes.

“This will be a critical well for both Sound Energy and the whole of Eastern Morocco, which is rapidly attracting interest from across the sector.

House broker Cantor said it was another encouraging update.

Its total net asset value for Sound is 30.9p a share, including 16.7p of core NAV and 14.2p of risked NAV, and it valued Sound’s current Italian production at Rapagnano and Nervesa at 1.5p a share.

Source: (February 15, 2016) Proactive Investors

About Sound Energy
Sound Energy is a well-funded Mediterranean exploration and production company with an institutional cornerstone investor and strong liquidity. It has built a high quality, action orientated, team across Milan, Rabat and just outside of London focused on permitting, funding and then delivering a Mediterranean and gas focused drill program which is balanced in terms of risk and reward.

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