The share price is up some 400% in the year to date thanks to success with the Tendrara well in Morocco, but, Sound Energy PLC (LON:SOU) chief financial officer Mary Hood, in a Proactive Investors interview, explained there’s potential for a lot more growth yet.
"Tendara was the first of our three strategic plays in our portfolio at present,” Hood said.
“We have Badile which is coming up very shortly and we also have Sidi Moktar.
“Each of those could potentially have three-digit potential for the share price."
Hood noted that the strong share price performance in the year to date partially recognises Sound’s success at Tendrara, where the group had high hopes which have been exceeded by the initial well results.
Before drilling Sound estimated there could be between five and ten trillion cubic feet (TCF) of gas in the target and, as Hood says, the company has viewed the results thus far as a “great success”.
“Did the multi-TCF potential surprise us? No, it didn’t. But, what we were looking for was a commercial flow rate of say 3 to 3.5 million scuffs [standard cubic feet or ‘scf’] per day, and what we’ve actually got from that first well, the T6 well, is a flow rate of 17 mln scuffs per day.
She added: “It definitely surpassed our expectations.”
Hood goes on to discuss the T7 well, which is currently being drilled, and she highlights that the well is designed to prove a development concept for the Tendrara field.
Sound also plans to drill an ‘outpost’ well, to prove up some the envisaged ‘multi-TCF’ potential.
Oil field services giant Schlumberger is covering the lion’s share of the drilling costs in Morocco, and as a result of a separate tie-up it is also partnering Sound Energy in Italy, where they are drilling the Badile well together.