LONDON (ShareCast) - (Sharecast News) - Morocco-focussed upstream gas company Sound Energy updated the market on its operations in Eastern Morocco on Monday, having previously reported a discovery and a planned stimulated well test at TE-10 - the second well in its current three-well exploration programme in the onshore Greater Tendrara area.
The AIM-traded firm had announced on 7 January that the high-definition formation micro-imager log (FMI), which provided a micro-resistivity image of the wellbore at a much finer resolution than the initial logging suite, had potentially identified the presence of additional thin bedded net pay within the previously-identified potential gross reservoir interval between a measured depth (MD) of 1,899 metres and 2,009 metres.

It said it had recently commissioned the independent consultancy ERCE to undertake a petrophysical analysis of the gross reservoir interval encountered in TE-10.

The analysis integrated a preliminary sample subset of the 57 sidewall core samples with the wireline log data, including the FMI data and the high-resolution density logs.

Based on the results of that analysis, Sound Energy confirmed it had made an upward revision of the previously-announced net pay estimates, from up to 10.5m to up to 15.4m - a 47% increase - with a mid-case of 13.1m and a low case of 9.5m.

That net pay was distributed throughout the 110m gross reservoir interval identified.

The objective of the previously-announced mechanical stimulation testing programme would be to access that distributed pay, the board explained.

Sound Energy said it had recognised the presence of a fracture network in both the FMI data and sidewall cores.

The potential for a positive impact of that fracture network on the net pay calculation was not included in the scope of the petrophysical analysis undertaken by ERCE, but would be considered once the well had been tested.

Additionally, Sound Energy had previously confirmed gas shows observed during drilling, and calculated that net pay extended below the newly-mapped structural closure at approximately 1,943m MD - updated from 1,958m MD.

Those observations suggested that the gas accumulation most likely extended up-dip into the North East Lakbir structural-stratigraphic trap, the firm said.

"Following the latest seismic mapping, modelling and net pay analysis, the company has now estimated the gas resources discovered by TE-10 across both the structural and stratigraphic trapping geometries."

The North East Lakbir structural-stratigraphic closure had been assessed with a mid-case potential on a gross 100% basis of 1,430 bcf gas originally in place (GOIP), with a 3,408 bcf GOIP upside case and a 584 bcf GOIP low case.

As was always the case with new discoveries, the board said a further reduction in that range of volume uncertainty would require appraisal drilling.

The volume range in the structural closure alone was assessed with a mid-case potential on a gross 100% basis of 81 bcf GOIP - a 170 bcf GOIP upside case, and a 30 bcf GOIP low case.

Sound said that while those structural closure volumes had already been demonstrated by the TE-10 well, a successful well test was always required to confirm reservoir deliverability and commerciality.

"We set out last year to deliver an ambitious three well exploration programme to further unlock the Tendrara Basin and our second well is a discovery," said Sound Energy chief executive officer James Parsons.

"Following our initial post drill technical analysis, we are delighted to materially upgrade our net pay and provide confirmation of the multi Tcf potential of this well.

"We now look forward to addressing reservoir deliverability and hence commerciality with the well test."

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