(Ecofin Agency) - Sound Oil, the European and Mediterranean focused exploration and Production Company, listed on AIM with a cornerstone investor and strong liquidity, has announced the results of a technical evaluation of the onshore Tendrara licence, Morocco which was completed by SLR Consulting, and provided an update on preparations for the forthcoming well.  

As was announced on the 8th of June 2015, the Company has agreed to farm in to the Tendrara Licence as well as acquire a net working interest of 55% in, and operatorship of, the Tendrara Licence. Sound Oil's 55% working interest will be granted in two tranches, with an initial 37.5% awarded on completion of the farm in and the remaining 17.5% being granted once Sound Oil commits to a second exploration phase; which would include a second well.

At the Company's request, SLR has run an economic analysis using a number of gas price scenarios (with a constant US$75 per bbl condensate price). SLR also estimated the company's working interest in the Tendrara Licence.

Sound oil has An existing gas discovery (TE-5/Lakbir structure) with Best Estimate Contingent Resources of 170.8 Bscf of gas (High Estimate of 490.6 Bscf and Low Estimate of 16.6 Bscf) and 0.47 MMbbl of condensate (High Estimate of 4.2 MMbbl and Low Estimate of 0.39 MMbbl); 22% chance of success for the Best Estimate Contingent Resource and an additional exploration Best Estimate Prospective Resource of 740.2 Bscf (2.4 Tcf High Estimate and 200 Bscf Low Estimate) across the remainder of the licence area.

The Company however was delighted to announce that preparations for the forthcoming well at the Tendrara Licence are at an advanced stage. 

 “I am pleased to report that this evaluation validates the scale of both the existing gas discovery and the exploration upside at the Tendrara licence. We believe this asset provides a compelling risk / reward balance and a strong platform for further consolidation in country.” James Parsons, Sound Oil's Chief Executive Officer told Energy-pedia