Sound Energy awarded production concession

14 September 2018

Sound Energy, the Morocco focussed upstream gas company, is pleased to announce the award of the production concession relating to the Tendrara gas discovery in Eastern Morocco by the Moroccan Ministry of Energy.

The production concession award covers an area of 133.5 km and follows an application by the Company and its partners in June 2018. The field development plan underpinning this award includes: the drilling, pre first gas of up to 5 new horizontal development wells, in addition to recompletion of the existing TE-6 and TE-7 wells; the construction of a gas treatment plant and compression station (CPF) and a 120 km 20 inch Tendrara Gas Export Pipeline (TGEP) connecting the CPF and the delivery point to the Gazoduc Maghreb Europe pipeline. As already announced, front end engineering and design (FEED) is underway for both the CPF and TGEP. The achievement of first gas in approximately two years at an expected mid case production rate of around 60 million standard cubic feet per day, over a minimum period of 10 years, during which it is currently estimated, subject to optimisation of drilling plans, that an additional 10 to 13 wells will be drilled to maintain this production rate.

The Company expects to be in a position to take final investment decision on the Tendrara development once key development milestones have been secured, including a gas sales agreement, FEED development capital funding and local regulatory administrative formalities.