James Parsons, Sound Energy’s CEO, said, “I am delighted with the award of the first development concession in Eastern Morocco, which is a critical step in commercialising our gas discovery.”
He added, “The Company continues to make excellent progress on all fronts, including FEED, the gas sales agreement and ground works at TE-9.”
Sound Energy announced the concession on its website Thursday, September 6.
The British company anticipated its first gas production to be in two years at an “expected mid case production rate” of about 60 million cubic feet per day over a 10-year period.
The company will drill an additional 10 to 13 wells “to maintain this production rate.”
The production concession area covers 133.5 square kilometers and is based on a development plan which includes drilling 5 new horizontal development wells and “recompletion of the existing TE-6 and TE-7 wells.”
The plan also requires building “a gas treatment plant, compression station,” and a 120-kilometer-long pipeline of 20 inches wide.
The gas and oil company expects to make a “final investment decision once key development milestones have been secured.” This includes securing a “gas sales agreement, capital funding and local regulatory formalities.”
On August 31, Sound Energy signed a new eight-year petroleum agreement with the National Office of Hydrocarbon and Mines (ONHYM) in Tendrara region. It will come into effect after the approval of the Moroccan finance and energy ministries.
The new petroleum agreement, named “Greater Tendrara Petroleum Agreement,” covers an area of approximately 14,500 square kilometers extending across eastern Morocco and “surrounding the development concession application area relating to the Tendrara gas discovery.”
Following the petroleum agreement’s implementation, Sound Energy will hold 47.5 percent of the Greater Tendrara licensed area. Schlumberger holds 27.5 percent and the remaining 25 percent will be held by ONHYM.