Morocco-focused Sound Energy makes board changes amid restructuring
The company failed to achieve a commercial flow rate in its Eastern Morocco site, and expects to reduce its expenses by more than 50%
Sound Energy will see non-executive director David Clarkson step down from the company's board. This followed the appointment of Simon Davies as the company's non-executive chairman in May 2019. James Parsons will remain the CEO of Sound Energy, while the company explores monetisation options for its Eastern Morocco portfolio.
In May 2019, its TE-10 well test failed to achieve commercial flow, leading Sound Energy to review options to make money from its Eastern Moroccan portfolio. The company wrote in a statement that the results of its attempt to market this portfolio would be known before the end of 2019.
However, it noted that the results of the test "do not diminish Sound Energy's overall assessment of its Eastern Morocco acreage which, following the drilling of 5 wells and interpretation of new seismic data, all operated by the Company, contains a number of high impact plays."
Following the failed well test, it announced that it "initiated a structural cost reduction programme aimed at materially reducing the Company's ongoing operating expenditure, including reductions in staff numbers and staff costs."
It expects to reduce its general and administrative expenses by more than 50%.