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Rabat – After entering an agreement with Oil Gas Investment Fund (OGIF), Sound Energy PLC has already built two wells for their projected gas reservoir in the Tendrara region, and the third, TE-8, has reached its casing stage.
The TE-8, created to test the lateral extent of gas in the TAGI (Trias Argilo-Gréseux Inférieur) reservoir, has reached 2,977 meters in depth and is now just two meters away from the main reservoir of the TAGI formation.
In the case that gas in found in the main wells, a new track will be built 900 meters to the north west for the course of 30 days to assure deeper gas contact, according to investment website Proactive Investors.
“Whatever comes in the next two months, the firm has already enjoyed considerable success at Tendrara,” said Proactive Investor. The Tendrara license agreement, valued at EUR 254.3 million, has proven to be successful thus far.
Results from the previous wells, TE-6 and TE-7, support the company’s claims of success, as no barriers or water formations were found during testing. Sound Energy told Proactive Investors that the wells showed “significant connected volumes of Gas.” They stated that they will further monitor the gas pressure traveling across the older wells in order to verify the reservoir’s overall connectivity.
According to capitals analyst Lionel Therond, the gas reservoir is one of many “Value-accretive” catalysts expected in 2017.
“We believe the stock provides investors the opportunity to gain exposure to one of the few growth stories in the sector, with the potential to benefit from substantial appreciation as assets get de-risked and material resources are added,” he said in a written statement.
