Sound Energy, Zenith Energy
Sound has announced this morning the award of the production concession relating to the Tendrara gas discovery in Eastern Morocco by the Moroccan Ministry of Energy.
The FDP underpinning this award is very substantial and will be a significant part of the process for Sound as it moves toward commercialising gas discoveries. It involves drilling up to 5 new horizontal development wells in addition to recompleting the existing TE-6 and 7 wells. In addition as per previous missives will involve construction of a gas treatment plant and compression station with a 120km 20 inch pipeline to connect into the Gazoduc Mahghreb Europe pipeline.
The FEED work is underway for both these projects and Sound confirm that first gas is still on target for mid 2020 at a rate of 60 million standard cubic per day over a minimum period of 10 years involving an additional 10-13 wells. Following key milestones being secured such as a Gas Sales Agreement and FEED funding as well as regulatory formalities the FID decision can be taken. All in all things are looking up for Sound at this game changing time in the commercialisation of Tendrara gas in Morocco.
I was unable to write yesterday but wanted to briefly mention the Zenith announcement whereby they said that they had purchased the BD-260 drilling rig to complete the drilling activities in Azerbaijan.
In addition to this the company is planning to lease a 180 ton workover rig for four months starting 20th October. The company has also entered into a $1.5m facility over 18 months which it can be seen will be directly invested into operations in Azerbaijan. With these pieces of kit and associated drilling personnel Zenith looks an exciting prospect for the 4th quarter.