REG - Sound Energy PLC - Update re Exploration Permits

Sound EnergyAnnouncement

20/10/2022 13:30

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RNS Number : 5868D  Sound Energy PLC  20 October 2022

20 October 2022

 

Sound Energy plc

("Sound Energy", the "Company" and together with its subsidiary undertakings
the "Group")

 

Update re Exploration Permits: Sidi Moktar and Grand Tendrara

 

 

Sound Energy, the transition energy company, provides an update regarding its
exploration permits at Sidi Moktar and Grand Tendrara.

Sidi Moktar exploration permits

The Sidi Moktar exploration permits cover approximately 4,712 square
kilometres in Southern Morocco with an initial period, as previously extended,
of 4 years and 6 months (the "Initial Period") within the total duration of 10
years commencing on or about 9 April 2018.  The prior extension to the
Initial Period was announced by the Company on 13 October 2020, when it was
confirmed that the Sidi Moktar permit Initial Period had been extended by
24-months such that the Initial Period, as extended, was to end by 9 October
2022 (the "Amendment"). The Amendment resulted from the Company and Morocco's
Office National des Hydrocarbures et des Mines ("ONHYM") declaring an event of
force majeure during the Initial Period due to continued disruption caused by
the impact of the COVID-19 pandemic.

Notwithstanding the Initial Period having ended prior to the work commitments
thereunder having been completed, the Company has been and remains in regular
dialogue with the regulatory authorities and ONHYM in order that the Company
may reach a solution to complete the committed work programme following the
ending of the Initial Period and progress the exploration of this highly
prospective basin. The work commitments for the Initial Period of the Sidi
Moktar permits remain to acquire and process 500 kilometres of 2D seismic, a
short well test of the Koba-1 well and abandonment of Koba-1 and Kamar-1, if
required.

Grand Tendrara exploration permits

 

The Grand Tendrara exploration permits cover approximately 14,411 square
kilometres in Eastern Morocco and, following completion of the initial period
of 4 years within the total duration of 8 years commencing on or about 1
October 2018, the Company reports that it has submitted, having completed the
necessary work commitments during the Grand Tendrara initial period, an
application to ONHYM to enter the optional first extension period consisting
of 2 years.

The work commitment for the first extension period comprises the drilling one
exploration well with a Triassic objective. The Company expects to fulfil this
commitment by the planned subsalt drilling opportunities within the Trias
Argilo-Gréseux Inférieur ("TAGI") gas reservoir as announced by the Company
on 9 August 2022.  The TAGI is the proven reservoir of the TE-5 Horst gas
accumulation within the Tendrara Production Concession currently under
development.  On entry to the first extension period the company is required
to relinquish a portion of the permitted acreage. The currently proposed
retained area includes all Company recognised prospectivity.

The Company confirms that the commitment to drill two exploration wells with
Triassic objectives during the Grand Tendrara initial period were historically
fulfilled, and approved by ONHYM as such, by the drilling of TE-9 and TE-10.
The Company has therefore been able to make application for the first
extension period of the Grand Tendrara exploration permits.

Both the Sidi Moktar and Grand Tendrara permits are subject to an active and
constructive dialogue with ONHYM and the Ministry of Energy Transition and
Sustainable Development. Further announcements will be made, as appropriate,
in due course.

 

 

 

Commenting, Graham Lyon (Executive Chairman) said:

 

"Our ongoing licence activities at both the Sidi Moktar and Grand Tendrara
permits are subject to an active and constructive dialogue with ONHYM and the
Ministry of Energy Transition and Sustainable Development, however,
principally due to Covid -19, the last couple of years has restricted active
licence activity that can be safely and efficiently undertaken in country
either for onshore exploration geophysical surveying activities given
significant crew numbers required and also limited the ability to drill given
the over pressured nature of the subsalt TAGI reservoir with its inherent need
for significant and uninterrupted support services. Having submitted our
intentions to ONHYM to meet our licence commitments, we are continuing a
constructive dialogue with respect to both these permits.  Independently of
these discussions, we also continue to actively advance our fully funded
microLNG project whilst also separately making progress on Pre-FID activities
for our major pipeline development project at Tendrara".

 

 

For further information please contact:

 

 

 Vigo Communications - PR Adviser       Tel: +44 (0)20 7390 0230

 Patrick d'Ancona

 Finlay Thomson

 Sound Energy                           chairman@soundenergyplc.com (mailto:chairman@soundenergyplc.com)

 Graham Lyon, Executive Chairman

 Cenkos Securities - Nominated Adviser  Tel: +44 (0)20 7397 8900

 Ben Jeynes

 Peter Lynch

 SP Angel Corporate Finance LLP         Tel: +44 (0)20 3470 0470

 Richard Hail

 

 

 

The information communicated within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulations (EU) No.
596/2014. Upon the publication of this announcement, this inside information
is now considered to be in the public domain.

 

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