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Sound Energy PLC

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Market:
AIM
Market Cap:
£32.39 m
Price
3.00 GBX
Change
-1.64%
52 weeks high
33.30
52 weeks low
2.77

Sound Energy plc is a growth focused and private investor centric Moroccan gas explorer.

We are listed on AIM and benefit from:

  • a low cost, multi Tcf potential onshore gas discovery
  • a strategic partnership with Schlumberger - one of the largest companies in our sector
  • two supportive cornerstone investors
  • a potentially transformational drill programme, and
  • a strong retail shareholder base

We are pursuing an onshore gas strategy underpinned by strong gas market fundamentals, which is proving very robust to the current oil price environment and to an increasingly carbon-conscious world. Gas is, rightly, seen as a cleaner alternative to coal and oil.

The energy sector is in a period of some transition, with oil prices having fallen significantly since 2014, which has put considerable strain on the global oil & gas industry, despite the recent partial recovery in oil prices. We observe a “new order” emerging, with the market increasingly rewarding companies with low debt levels, strong management, cash on the balance sheet and a bias for gas.

Despite the challenging sector backdrop, Sound Energy is positioned in a sweet spot – analogous to being in the peaceful eye of a violent storm – with an opportunity to grow boldly and counter-cyclically whilst valuations are low and competition is limited.

We are focused on unlocking the Moroccan gas promise, which includes:

Proving further volumes with three bold exploration wells in Eastern Morocco (starting mid 2018), each with multi Tcf potential
De-risking of its 31 Tcf exploration potential in Eastern Morocco and up to 9 Tcf in Sidi Moktar through shooting new seismic and aerial gradiometry
Development of its existing 0.6 Tcf gas discovery
Consolidating our onshore gas position in Morocco
So, in summary, Sound Energy is a focused on “shaping moves” and working to deliver a substantial gas company.

 

James Parsons
Chief Executive Officer
May 2017

 

Sidi Mokhtar

Overview

Area: 2,700 km​2

Status: Exploration Permits

Effective date:  August 2009

Term: 8 years

Resource potential: to be defined

Interest:

Sound Energy 75%
Extra Information

Play type: gas discovery (Kechoula) in the Lower Liassic sequence, (73 Bscf net to Sound, initial estimate, single accumulation most likely), deeper upside potential in Triassic (TAGI) and Paleozoic
Two wells drilled with positive gas indications from log and gas shows in the Liassic; extended well test planned in 2017
Unrisked up to 11.2 Tcf exploration potential (Net to Sound) following interpretation of the existing 2D seismic.
Risked up to 3 Tcf exploration potential targeting the Triassic (TAGI) objective; net to Sound
Asset is located 10km from the Meskala gas processing plant
Permit Area
The Sidi Moktar permit is located in the Essaouira Basin in central Morocco (Western sea border) and is sub-divided into three blocks (North, South and West) with a combined area of 4,500 square km.
Adjacent to and surrounding the Permit is the Meskala Field, a gas/condensate discovery, which has been producing since the late 1980s and represents one of the most significant discoveries in Morocco to date.
The Sidi Moktar permit itself hosts some 40 wells, a pipeline and production facilities for gas and condensate.
The Geology and Activity History
There are four Exploration plays within the Sidi Moktar permit:

PS1 Argovian (sandy dolomite) which has given rise to five discoveries (Jeer, Kechoula, Sidi Rhalem, Toukimt and N’Dark).
PS2 Low Liasssic (sandstone) which has given rise to two discoveries (Zelten and Kechoula).
PS3 Triassic (TAGI equivalent) which has given rise to one discovery (Meskala); and
PS4 Paleozoic Devonian cabonates which remain frontier exploration, gas shows present in penetrations beneath the Meskala field with one well testing gas.

Anoual

Overview
Area: 2,700 km​2

Status: Exploration Permits

Effective date:  August 2009

Term: 8 years

Resource potential: to be defined

Interest:

Sound Energy 75%
Extra Information

Play type: gas discovery (Kechoula) in the Lower Liassic sequence, (73 Bscf net to Sound, initial estimate, single accumulation most likely), deeper upside potential in Triassic (TAGI) and Paleozoic
Two wells drilled with positive gas indications from log and gas shows in the Liassic; extended well test planned in 2017
Unrisked up to 11.2 Tcf exploration potential (Net to Sound) following interpretation of the existing 2D seismic.
Risked up to 3 Tcf exploration potential targeting the Triassic (TAGI) objective; net to Sound
Asset is located 10km from the Meskala gas processing plant
Permit Area
The Sidi Moktar permit is located in the Essaouira Basin in central Morocco (Western sea border) and is sub-divided into three blocks (North, South and West) with a combined area of 4,500 square km.
Adjacent to and surrounding the Permit is the Meskala Field, a gas/condensate discovery, which has been producing since the late 1980s and represents one of the most significant discoveries in Morocco to date.
The Sidi Moktar permit itself hosts some 40 wells, a pipeline and production facilities for gas and condensate.
The Geology and Activity History
There are four Exploration plays within the Sidi Moktar permit:

PS1 Argovian (sandy dolomite) which has given rise to five discoveries (Jeer, Kechoula, Sidi Rhalem, Toukimt and N’Dark).
PS2 Low Liasssic (sandstone) which has given rise to two discoveries (Zelten and Kechoula).
PS3 Triassic (TAGI equivalent) which has given rise to one discovery (Meskala); and
PS4 Paleozoic Devonian cabonates which remain frontier exploration, gas shows present in penetrations beneath the Meskala field with one well testing gas.

Greater Tendrara

Overview
Area: 14,500 km​2

Status: Permit

Effective date: 23 April 2013

Term: 8 years

Interest:

Net effective interest of 47.5%
Highlights
TE-6 Vertical well, 28m net pay, flow achieved pre stimulation, 17 mmscf/d achieved post-stimulation
TE-7 Horizontal well,  32 mmscf/d after clean up: Successful Extended Well test
TE-8 Step out appraisal well completed
Resources certification by RPS Energy Consultants Limited completed January 2018 confirms mid-case GOIP of 0.65 Tcf (TE-5 Horst alone)
Exploration programme to un-lock multi-tcf play well advanced
Permit Area
Figuig Province, North-East Morocco
120 km from Gazoduc Maghreb Europe (GME) pipeline (connecting Algeria and Morocco to the Spanish/Portuguese gas grids)
Sub-divided into eight blocks
Combined area of 14,500 km2.
Geology
Represents a continuity of the Algerian Triassic Province and Saharan Hercynian platform
Proven gas play in the Triassic ’tagi’ reservoir with significant upside potential
Exploration programme to unlock potential of Depper Palaeozoic reservoirs

THE TEAM

Marco Fumagalli
Chairman (Non- Executive)

Marco Fumagalli joined Sound Energy as a non-executive Director in July 2014. Marco is Managing Partner at Continental Investment Partners SA, a Swiss-based fund and cornerstone shareholder in Sound Energy. Marco is a well known Italian businessman who was previously a Group Partner at 3i. Marco is a qualified accountant and holds a degree in Business Administration from the University “Bocconi” of Milan.

Brian Mitchener
Exploration Directo
r

Brian has over 36 years' experience in O&G exploration including as Regional General Manager Exploration at BG, Vice President International Exploration for Africa at Statoil and 22 years with BP Exploration. Brian is a Chartered Geologist, and a past President of the Petroleum Group of the Geological Society.

JJ Traynor
Chief Financial Officer

Over 28 years’ experience in oil & gas and financial markets, including as Executive Vice President of Investor Relations at Shell, Managing Director of the number one ranked oil & gas research team at Deutsche Bank, and as an Exploration Geologist with BP.

Mohammed Seghiri
Interim CEO, Morocco

Over 18 years’ experience in leading complex sectors, including Gas Storage, Oil & Gas Exploration and Power Production. Joined Sound Energy from OGIF where he was Managing Partner.

Richard Liddell
Non-Executive Director

Richard Liddell has over thirty-five years’ experience in the oil and gas industry. Richard has served on the board of Falkland Oil and Gas from 2005 to 2015 initially as a non-executive director and, latterly, as Chairman. He is also Chairman and Managing Director of Clara Petroleum. He was Operations Director of Premier Oil from 2000 until 2003 and prior to that spent three years as Director of Development at BG Exploration and Production.

Sound Energy
1st Floor
4 Pembroke Road
Sevenoaks
TN13 1XR
United Kingdom
[email protected]

Tel: +44 (0)1732 606030

Apennine Energy Spa
Via XXV Aprile 5
20097 San Donato Milanese (MI)
Italy

Sound Energy Morocco
Mahaj Ryad Center
Avenue Al Arz, Bâtiment 6, 3ème étage
Hay Riad, Rabat 10100

RBC Capital Markets
Riverbank House
2 Swan Lane
London
EC4R 3BF

 

Macquarie Capital (Europe) Ltd
Ropemaker Place
28 Ropemaker Street
London
EC2Y 9HD

Cenkos Securities plc
6 7 8 Tokenhouse Yard
London
EC2R 7AS

 

Registrars

Link Asset Services
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU

 

Solicitors

Baker & McKenzie LLP
100 New Bridge Street
London
EC4V 6JA

Clifford Chance International LLP (Development)
169, Boulevard Hassan 1er
20000 Casablanca