Successful Koba-1 Well Test

Source: www.gulfoilandgas.com 7/5/2017, Location: Africa

Sound Energy, the Moroccan and European focused upstream gas company, is delighted to report the success of operations to date at the Koba-1 well at Sidi Moktar, onshore Morocco.

The Company has successfully re-entered, completed, perforated and flared gas at surface from the Argovian reservoir (historically the main producing reservoir in the Kechoula discovery).

A five metre interval was perforated in the Argovian reservoir at a measured depth of 1406 metres where the static pressure was measured at 98 bar, confirming a producible gas accumulation. The Company has now temporarily suspended the well in preparation for a rigless extended well test - after which the Company hopes to move rapidly to production. The Koba-1 well, drilled at the crest of the Kechoula discovery, is close to existing infrastructure and gas demand, including the large scale Moroccan state owned OCP Phosphate plant.

The Company believes the Sidi Moktar licences also contain significant pre-salt potential and notes the quantitive assesment prepared by a previous operator in 1998 which referred to exploration potential of the Sidi Moktar licences of up to 9 Tcf unrisked gas originally in place (gross) in the TAGI and Paleozoic. The Company will require the reprocessing of existing 2D seismic, acquisition of new 2D seismic and drilling results before forming its own volume estimates for the exploration potential of the Sidi Moktar licences.

The Company also advises that due to poor quality cement bonding across the Lower Liassic in the Koba-1, and likely the Kamar-1, wells, the Company no longer intends to immediately re-enter the Kamar-1 well (subject to agreement with the regulatory authorities). The Lower Liassic at Kechoula will therefore be evaluated at a later date together with the deeper pre-salt.

As a result, the rig will be immediately released from Sidi Moktar and will likely return to the Company's licences in Eastern Morocco.

James Parsons, Sound Energy's Chief Executive Officer, commented:

"We are delighted by this early success at the Kechoula discovery and look forward to both the extended well test and to unlocking the deeper, and much larger, pre-salt potential in the future.

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