Morocco-focused energy company Sound Energy released a statement with a strategic and operational update following its announcement that it TE-10 well test failed to achieve commercial flow. This could mean the sale of its Eastern Moroccan portfolio.
The company's board is reviewing options to make money from Sound Energy's Eastern Moroccan portfolio and will market that portfolio as the first step to assessing a sale, prior to FID. It will pause operations in the region, including with TE-11, the third well in its exploration programme, until it receives the results of the marketing process.
"We are now approaching the final stages of Sound Energy's strategy to drill a bold exploration programme in Morocco and then explore options for early monetisation," said Sound Energy CEO James Parsons in a statement on the company's website. "Should the Board receive the right price for the Company's East Morocco acreage, our intention would be to return the net proceeds of any divestment to Sound Energy shareholders in the most efficient manner possible."
In the statement, it noted that the results of the test "do not diminish Sound Energy's overall assessment of its Eastern Morocco acreage which, following the drilling of 5 wells and interpretation of new seismic data, all operated by the Company, contains a number of high impact plays."
It noted that the TE-5 Horst discovery within Tendrara Production Concession "is a candidate for a 66mn standard cubic feet per day mid-case final investment decision (FID)."
The company also said that there was additional exploration potential in the TAGI and Palaeozoic, which it internally estimates to have an exploration potential of 20trn cubic feet of unrisked gross gas originally in place.