Sound Energy has confirmed the start of drilling at the third Tendrara well, onshore Morocco, and separately provided an update on its entering a binding agreement with Oil & Gas Investment Fund.
Following the recent success at Sound’s first two Tendrara wells (TE-6 and TE-7), its third well (TE-8) was spudded on Feb. 19 .
The TE-8 well is a step-out appraisal well some 12 km northeast of TE-7 with the objective of proving up significant additional volumes in the TAGI (Trias Argilo-Greseux Inferieur) reservoir whilst also, for the first time, drilling deeper into the Paleozoic formation.
“The drilling and logging of the TE-8 main well bore to a true vertical depth (TVD) of approximately 2975 metres is expected to take approximately 40 to 50 days,” said Sound in a statement.
“Assuming gas is encountered in the main well bore, a further 30 day sidetrack will be drilled to a TVD of approximately 2633 metres to prove a potentially deeper gas contact approximately 900 metres to the north-west.”
Separately, Sound has entered binding agreements with Oil & Gas Investment Fund (OGIF) for the conditional acquisition of a further 20% interest in the company’s Tendrara exploration permits, rights to apply for a 75% operated interest in an exploration permit for the Meridja area and an application and/or rights to apply for a 75% position in certain relinquished area(s) of the Tendrara exploration permit areas.
Consideration for the acquisition would be the issue, on completion, of 272m new shares in the company, the issue of which remained subject to Sound’s shareholder approval at a general meeting. The consideration shares would represent about 28.8% of the company’s enlarged issued share capital following the issue of the consideration shares.
At the mid-market closing price of 93.50p per Sound Energy ordinary share on Feb. 17, the consideration Shares had an implied market value of about £254.3m.
At 9:41am: (LON:SOU) Sound Energy PLC share price was -3.5p at 90p
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