Sound Energy first entered the basin by farming into the Tendrara-Lakbir Petroleum Agreement in June 2015, taking a 55% working interest in the Petroleum Agreement, partnering ONHYM (25% interest) and Oil & Gas Investment Fund (20% interest). Sound Energy also assumed the Operatorship.
In December 2015, Sound Energy entered into a Field Management Agreement with Schlumberger. Under the terms of the agreement, Schlumberger agreed to fund a significant portion of the capital expenditure on the first three Tendrara wells and provide technical services, equipment and personnel to the Company.
The first well, TE-6, was designed to appraise the larger of the two existing gas discoveries in the Tendrara-Lakbir Petroleum Agreement, the TE-5 Horst, with a view to addressing the residual reservoir uncertainties (well deliverability and areal continuity) and proving up sufficient reserves to properly size the design of the infrastructure required to commercialise the gas. This vertical well was drilled and tested, and achieved a highly commercial gas flow, post stimulation, of 17.9 million standard cubic feet of gas per day (MMscf/d), which was well above the Company’s initial expectations.
The Company then proceeded to drill a second horizontal well, TE-7, with multiple stages of mechanical stimulation and achieved a post stimulation peak rate of 32 MMscf/d. The third well, TE-8, was drilled as an ambitious step out located 12 kilometres to the northwest of the gas discovery proved unsuccessful.
In 2017, Sound Energy acquired the remaining interest of the Oil & Gas Investment Fund in the Tendrara Lakbir Petroleum Agreement.
Also in 2017, the Company entered into the adjacent Anoual Petroleum Agreement, an area with the same fundamental geology, with Schlumberger farming into 27.5% of this Agreement by fully funding a regional exploration programme, including an airborne Full Tensor Gravity Gradiometry (“FTG”) & magnetic surveying, and 2D seismic coupled with magnetotelluric (“MT”)/ time-domain electromagnetics (“TDEM”) surveying across the region.
Building our Long-term Partnerships and Knowledge
In August 2018, Sound Energy and partners to the Tendrara-Lakbir PA were awarded the 25-year Tendrara Production Concession relating to the Tendrara gas discovery of the TE-5 Horst by the Moroccan Ministry of Energy. The production concession award covers an area of 133.5 sqkms. After fulfilling all earlier work programme obligations, the partnership decided not to enter the second Complimentary Period of the Tendrara-Lakbir Petroleum Agreement, therefore, the area held under this Agreement was abandoned.
In October 2018, Sound Energy and a new consortium including Schlumberger were awarded the new Grand Tendrara Petroleum Agreement, with new work programme obligations and a newly defined area.
The partnership proceeded to drill two long step out exploration wells, TE-9 and TE-10, located approximately 27 kilometres and 34 kilometres respectively from the TE-5 Horst and on the Grand Tendrara Petroleum Agreement area. Neither well resulted in a commercial gas discovery.
In July 2020, the Company completed a re-negotiation of the terms of its Anoual Petroleum Agreement with ONHYM. The initial period was extended to 4 years and 4 months from 31 August 2017 and work programme amended to include an exploration well.
In 2021, Sound Energy entered into a sale and purchase agreement to acquire Schlumberger’s entire participating interests in the Anoual and Grand Tendrara Petroleum Agreement, together with full control over Schlumbergers participating interest in the Tendrara Concession.
License Details
- Area
14,411 km2 - Status
Petroleum Agreement: Exploration - Effective date
1 October 2018 - Term
8 years
Resource Potential
Exploration potential in the Triassic TAGI reservoir of 7.97 Tcf gross/5.98 Tcf net (mid-case un-risked GIIP) identified in sub-salt concepts, leads and prospects
Interests
Mana Energy (Operator) 47.5%
Sound Energy 27.5%
ONHYM 25%
Permit Area
Surrounds the Tendrara Production Concession.
Located for access to Gazoduc Maghreb Europe (“GME”) pipeline approximately 120 kilometers to the north. The 522 kilometres long Moroccan section is owned by the Moroccan State and operated by Metragaz. The pipeline connects Morocco to the Spanish/Portuguese gas grids.
Geology
Only eight wells drilled across the entire area, all encountered evidence of a petroleum system.
Two Triassic TAGI gas discoveries:
- SBK-1 tested by the previous licence holder at a peak rate of 4.41 mmscf/d in July 2000
- TE-10 flowed gas at non-commercial rates
Exploration potential in the Triassic TAGI reservoir of 7.97 Tcf gross/5.98 Tcf net (mid-case un-risked GIIP2) identified in sub-salt concepts, leads and prospects.
Future Developments
Number of targets available for near term drilling.
All work commitments completed for the current period. The next voluntary period commences mid-September 2022 with one well commitment to be drilled before September 2024.
1 Trias Argilo-Gréseux Inférieur (‘TAGI’) are sandstones deposited in a fluvial-alluvial environment and are significant oil and gas reservoirs across Algeria, extending into Morocco.
2 Internal exploration potential estimates, unrisked original gas in place.
License Details
- Area
8,873 km2 - Status
Petroleum Agreement: Exploration - Effective date
8 September 2018 - Term
9 years 4 months
Resource Potential
Exploration potential in the Triassic TAGI reservoir of 11.48 Tcf gross/8.61 Tcf net (mid-case un-risked GIIP) identified in sub-salt concepts, leads and prospects
Interests
Mana Energy (Operator) 47.5%
Sound Energy 27.5%
ONHYM 25%
Permit Area
Located for access to Gazoduc Maghreb Europe (“GME”) pipeline approximately 120 kilometers to the North. The 522 kilometres long Moroccan section is owned by the Moroccan State and operated by Metragaz. The pipeline connects Morocco to the Spanish/Portuguese gas grids.
Geology
Only one well drilled across the entire area.
Committed geophysical surveying completed with a single well commitment remaining.
Exploration potential in the Triassic TAGI1 reservoir of 11.48 Tcf gross/8.61 Tcf net (mid-case un-risked GIIP2) identified in sub-salt concepts, leads and prospects.
Future Developments
“M5” prospect matured for drilling a TAGI target, operational planning progressing.
1 Trias Argilo-Gréseux Inférieur (‘TAGI’) are sandstones deposited in a fluvial-alluvial environment and are significant oil and gas reservoirs across Algeria, extending into Morocco.
2 Internal exploration potential estimates, unrisked original gas in place
License Details
- Area
4,711 km2 - Status
Petroleum Agreement: Exploration - Effective date
9 April 2018 - Term
10 years
Resource Potential
Unrisked exploration potential of up to nine Tcf gross original gas in place following interpretation of the historical 2D seismic. The Company believes the pre-salt plays have been overlooked in the region with limited drilling to specifically target these deeper successions
Interests
Operator with an effective interest of 75%
ONHYM holds the remaining 25% interest
Permit Area
The permit is located on the Atlantic seaboard of Morocco approximately 100 kms to the west of Marrakech
In 2016, Sound Energy entered into binding agreements with Maghreb Petroleum Exploration S.A and PetroMaroc Corporation Plc to acquire a 75% operated position in the Sidi Moktar Petroleum Agreement. ONHYM retains the remaining 25% position under the Petroleum Agreement. In July 2017, the Company reported the results of a re-entry, completion, perforation and flow testing of the existing Koba-1 well, focused on previously producing relatively shallow gas reservoir.
Strategically, the Company has shifted its focus on the Sidi Moktar area towards what it believes to be the potentially more significant opportunity of the deeper Triassic TAGI1 and Palaeozoic gas plays in the region already demonstrated by the gas and condensate producing adjacent Meskala Field operated by our partner ONHYM. In June 2018, the Company was awarded a new eight-year Petroleum Agreement and is now actively seeking a farm-in partner to participate in a geophysical survey programme focused on these deeper objectives.
In October 2020, the Company announced a two-year extension to the initial period of the Sidi Moktar licence and that the work programme for the initial period of the Sidi Moktar permit remained unchanged.
Geology
The Sidi Moktar permit hosts a variety of proven plays. Previous exploration has focused on the shallower post-salt plays. Sound Energy believes that the deeper, sub-salt Triassic and Palaeozoic plays, already proven by the Meskala Gas Field, may contain significant prospective resources, in excess of any discovered volumes in the shallower stratigraphy.
Un-risked exploration potential of up to 9 Tcf2 gross original gas in place following interpretation of the historical 2D seismic. The Company believes the pre-salt plays have been overlooked in the region with limited drilling to specifically target these deeper successions.
The sub-salt plays are underexplored with more than 60 historical exploration wells focused on shallower objectives in the Jurassic post-salt carbonate successions. The few historical sub-salt tests were drilled on poor sub-salt seismic imaging. Recent improvements in seismic acquisition and processing technologies are expected to provide enhanced imaging of the sub-salt structure and geology.
Sound believes that all elements of petroleum system present and commissioned integrated geological mapping, basin restoration and 3D petroleum system modelling to de-risk the Triassic and Palaeozoic plays in the basin, proven by the Meskala Field which produces gas and condensate from a Triassic reservoir. Note that the salt forms a critical and extensive seal retaining sub-salt overpressures and preserving this deeper petroleum system from the later Atlantic and Alpine tectonics.
Future Developments
Our next step is to mature the identified leads to drillable prospects with improved seismic imaging. We aim to acquire new, high-quality 2D seismic data in 2022, focused on improving the sub-salt imaging. This work is currently planned culminate in an exploration well targeting a high-impact gas prospect in 2023.
1 Trias Argilo-Gréseux Inférieur (‘TAGI’) are sandstones deposited in a fluvial-alluvial environment and are significant oil and gas reservoirs across Algeria, extending into Morocco.
2 Internal exploration potential estimates, unrisked original gas in place (gross)