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Oil Capital
EPIC: SOU
Market: AIM
52-week High/Low: 58.90p / 28.86p
Sector: Energy
Market Cap: 379.89M

We are a well-funded Mediterranean exploration and production company, listed on AIM, with an institutional cornerstone investor and strong liquidity. We have built a high quality, action orientated, team across Milan, Rabat and just outside of London focused on permitting, funding and then delivering a Mediterranean and gas focused drill programme which is balanced in terms of risk and reward.

Sound Energy PLC

www.soundenergyplc.com

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Big picture - Why invest in Sound Energy PLC

Sound Energy PLC Snapshot

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 Moktar

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

 

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

Smith & Williamson Corporate Finance Limited
25 Moorgate
London
EC2R 6AY

Cantor Fitzgerald Europe
One Churchill Place
London
E14 5RB

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

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

Crowe Clark Whitehill LLP
St Bride's House
10 Salisbury Square
London
EC4Y 8EH

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