Toronto – The recent spike in exploration activity in Morocco will allow independent operators to translate findings into commercial success, says a report from BMI Research, a Fitch Group Company.
There is more to gas exploration than digging big holes, and stand-out operators in Morocco such as Sound Energy and SDX Energy are on the verge of proving it. Thanks to a combination of a welcoming investment environment in the Kingdom and tantalizingly rich underground resources, Morocco is close to seeing those heavily-courted investments bear fruit.
Sound Energy – Sound Investment
Sound Energy, for example, has made considerable progress at its Tendrara and Sidi Moktar licenses throughout the first half of 2017. Well TE-8 turned out to be a successful test well at Tendrara, with results still being evaluated. Over the next six months, the company plans to re-enter the TE-1 well to expand on the TE-8 discovery.
Over the long term, Tendrara will “target connection to the Gas Maghreb Europe Pipeline which currently links several Moroccan power stations, albeit which currently rely on Algerian imported gas,” says BMI Research.
As for the Sidi Moktar license, the remainder of 2017 will see a re-working of the Koba-1 and Kamar-1 wells. Sound Energy’s longer-term plan for the license will “target domestic phosphate plants, located close to the site, where growing demand for gas is expected.”
SDX Energy – Focus Pays Off
SDX Energy and its singular focus on North Africa for investment is well on track. Their Sebou license, acquired in January as part of the Circle Oil acquisition, “currently produces from several resource bases, supplying approximately 6mn cubic feet/day to the nearby Kenitra Industrial Zone.”
Long-term plans for Sebou include the drilling of fives wells, as the company hopes to increase gas volumes to existing customers and supply volumes to new customers.
As for their Lalla Minouna license, SDX plans to drill two exploration projects in 2017 as well as a minimum of two wells by the year 2021 at the Gharb Centre, recently acquired in the north of the country.
