LONDON (ShareCast) - (ShareCast News) - Sound Oil gave investors a reason to cheer at the start of the week as company boss James Parsons announced an "early and potentially very material success" at one of the oil and gas explorer´s three strategic plays.
Parsons announced that rigless operations continued at the recently drilled TE-6 (Tendrara) well, onshore Morocco, and that a "significant stable" flow had already been achieved, which was "already significantly above company expectations".

That was despite only 18% of the total reservoir having been accessed and no stimulation having yet been performed.

Following an initial perforation of 5 metres of the 28 metres of net pay, at a depth of between 2,601 and 2,606 metres, the well had achieved a stable flow rate of 1.36 MMscf/d with a choke of 16/64.

The company would next update investors on its progress at Tendrara later in July, European/Mediterranean-focused Sound Oil said in a statement.

James Parsons, Sound Energy's Chief Executive Officer, commented: "I am absolutely delighted to report what appears to be an early and potentially very material success at the first of our three Strategic Plays.

"We eagerly await the post stimulation flow rate but I believe the early results of this first well already both prove a material commercial rate at Tendrara and provide significant early clues as to the regional potential of the Eastern Morocco TAGI reservoir."

After the announcement analyst at Finncap reiterated their 'buy' recommendation on the shares and 32p target price.

As of 15:31BST shares in Sound Oil were rising by 18.13% to 28.5p.

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