Sound Energy PLC (LON:SOU) said wireline log interpretation of the TE-9 well the Tendrara area of Morocco has not established the presence of producible gas, and hence the well will be plugged and abandoned, and not tested, with the firm to move directly on to the TE-10 surface location.
The AIM-listed Moroccan focused upstream gas company said TE-9, the first of a three well programme to explore three non-related play concepts in the Tendrara area was drilled to a total measured depth of 2925 metres and penetrated both the TAGI primary target and the Paleozoic secondary target.
The group said the well encountered 60 metres of dolomitized silty sandstone, interpreted as an age equivalent to the primary target TAGI sandstone, and petrophysical analysis of the wireline data indicates the interval is of low porosity and therefore poor reservoir quality.
Sound Energy added that drill gas readings in both the TAGI and Paleozoic intervals showed a range of C1 to C5 hydrocarbons, which the company believes is further evidence of a working petroleum system.
It said all data from the well are subject to ongoing analysis, which also includes other rock and drill gas samples recovered during operations, that will provide further valuable data to de-risk the prospectivity of the wider permit area.
The company said it will now plug and abandon the well and move directly to the TE-10 surface location, which is ready.
It added that TE-10 will target a TAGI structural-stratigraphic play with previously advised estimated volumes of 2.6 Tcf mid case gross gas originally in place (GOIP) - 5.0 Tcf GOIP gross upside case and a 1.2 Tcf GOIP gross low case - and will now reach total depth 50m into the underlying Palaeozoic.
The group said it remains well funded with unaudited cash balances as at 14 November 2018 of more than US$30mln.
It confirmed that preparation for the Final Investment Decision (FID) for the TE-5 discovery continue as planned, with Front End Engineering Design (FEED) conducted and paid for by the Enagas consortium due to complete around the end of 2018.