Rabat - Sound Energy PLC has entered a binding agreement with Oil & Gas Investment Fund (OGIF) for an asset acquisition valued at £254.3 million and has started drilling a 3rd well in the Tendrara region.
Rabat – Sound Energy PLC has entered a binding agreement with Oil & Gas Investment Fund (OGIF) for an asset acquisition valued at £254.3 million and has started drilling a 3rd well in the Tendrara region.
The European and African focused gas company has started the drilling of the TE-8 well this Sunday, February 19, according to a statement released on Monday (still looking for it). The company announced earlier this month that the works would start in late February.
In the statement Sound Energy PLC clarified that it has entered into binding agreements to acquire an additional 20% stake in the Tendrara licence onshore Morocco and to secure rights to apply for stakes in exploration permits.
Sound Energy originally struck a deal with the oil and gas investment fund SAS in January but has now signed binding deals to acquire 20% of Tendrara, in which it already owns a majority stake plus the rights to apply for a 75% stake in an exploration permit in the Meridja area and in certain relinquished areas of the Tendrara exploration permit areas.
TE-8 is the third well Sound Energy will have drilled on the license after the TE-6 and TE-7 wells, whose production tests concluded with successful results. Sound Energy intends for TE-8 to prove the volume of additional gas in the TAGI (Trias Argilo-Gréseux Inférieur) reservoir through deeper drilling in the Paleozoic formation, according to the statement.
The well will be drilled vertically over 2,975 meters for 40 to 50 days.
Tendrara covers an area of 14,500 km2 in the Eastern Region, in the northeast of Morocco. 55% of the region’s drilling is operated by Sound Energy, with the rest run by ONHYM (25%) and OGIF (20%).
Sound Energy expects to soon run 75% of all drilling operations in Tendrara, as the British company plans to buy the shares of its partner OGIF.