Exciting times ahead
Sound Energy, together with its partner Schlumberger, has started drilling its second exploration well in its current programme on the Tendrara concession, onshore Eastern Morocco where it is operator with a 47.5% working interest. This programme is looking to evaluate multiple independent geological play types contained within the licence. The next two wells are targeting multi-TCF potential which, if successful, has the ability to provide a step change in the group’s reserves and resource base. In addition to Sound’s obvious exploration potential, we derive a valuation for Sound Energy’s share of the TE-5 discovery of approximately US$360 million using industry standard valuation methodology – equivalent to 27.1 p/share. Sound’s on-going exploration has the potential to materially increase this valuation.