Sound has announced that at the TE-10 well in the Tendrara area, onshore Morocco, intermediate wireline logs indicate the presence of gas across a thin interval with net pay of some 10.5m. The next stage will be to finalise logging and drill to TD at which stage they will test for flow rates, at this stage these tests may include some mechanical stimulation to complete.
Sound is only one of a few small/mid caps with genuine exploration programmes under way at the moment and is working in a counter-cyclical fashion with funding and technology from Schlumberger and the belief of its own in-house team in this important basin. This discovery seems to validate that strong belief in the TAGI with a good result and very good shows which will need to be tested. You could imagine the team considering a ‘mic drop moment’ after the recent share price battering when they received this news. The shares are up 15% this morning and investors will be watching with interest the ongoing process.
Faroe has announced that the Cassidy well, 8/10-7s, in the Norwegian North Sea has drilled to TD in the target Ula formation but that it was water wet which is understandably a disappointment. Despite this Faroe has a better than industry standard success rate and this year will have a 2/4 strike rate most, including DNO, will envy. With the first closing date for the bid next week Faroe needs to ensure that long term supporters with not sell out these valuable assets and strong management on the cheap.