1st game changing asset Nervesa 1st Nervesa well approx 1.8 mscf 4 million revenue with 2 million free cash flow.
2nd Nervesa well expected to be a better producer with a greater bottom hole pressure.
3rd Nervesa well to be drilled.
Spudding of Nervesa 2 well early April, depending on rig availability. Well I think the pad should be complete so the next available web cam could show some movement of rig equipment.
ENI had the monopoly for drilling in Italy, not any longer. What ENI did was complete the seismic survey all over Italy, have we got the information from these surveys ? With all the ex ENI work force I'm sure we will have something which would make a huge difference.
Crude as you say after all these years ! Crude...........this is our time. We've watched other companies hog the limelight - now it is our time to stand in the footlights & proclaim out loud - we did it rrrrrrrr waaaay!
I was very surprised with Malcy's valuation on success. I had priced in 5-10p from our current value and initially thought he was being a tad optimistic. Who am I to argue though and I certainly wont be moaning if he is right. Its not often you hear words like "nailed on" either, exciting times. Poor mukstar!!!!!!!!!
The journey continues during 2015 with the drilling of two appraisal wells (a well addressing the Southern lobe of the Nervesa discovery and a well addressing the Santa Maria Goretti discovery), the achievement of first gas at Nervesa and the drilling of one exploration well Badile. We are focusing both our financial and human resources on our game-changing assets, including our largest gas prospect, Badile which is the largest and most strategic of our assets with a gross best estimate NPV10 of Euro 486 million. It is our intention to farm out and then drill Badile in 2015 with a view to capturing the upside NPV, which exceeds US$2 billion, and then move onto Zibido (a twin prospect, world-class in its own right, on the same licence). Either late 2015 or during 2016 we will then drill Laura – a long reach deviated well addressing a previously drilled and successfully tested gas discovery 4Km offshore in Southern Italy.
Soundboy, we should be drillingour second well in a week or so. We are still awaiting a production permit for our first Nervesa well, Sant Andrea. These are truly exciting times for long standing Sound investors.
Is supposed to be lower risk than the first drii, and as crudehope alluded to, has the potential for a hidden gem. It is expected to flow better than the original also. I think a 95% fos was mentioned on the old website. Nothing is guaranteed, but although I have added recently, I think I may add some more just for this drill. I thought I was a bit optomistic about Sound at times, but 15 to 20p?? Malcy is far closer to Jp than me, and knows this game far, far better than me, so who knows? Will new Cpr cover Nervesa2? It should do, entire portfolio is supposed to be covered. In an email some weeks ago JP said heavy newsflow March/April, although order and timings not all in his control, and that he didn't think investors would be disappointed..... Time to look down the back of the sofa? (I don't want to sell my VOG shares just yet!)
To think that Malcy, of 'Malcy's blog' fame, thinks that on successful completion of the second Nervesa well, Sound Oil will be worth another 15-20p on top of current value. INervesa 2 can be deemed a step-out well as part of a field development & therefore comes with much less risk than an exploration well & so comes with an in house COS of well over 80%. It is our flagship project & may well prove to be larger than originally thought, if sand intervals 14 & 15 also prove to be gas bearing. In total three wells are envisaged with an annual turnover of at least £10 million. So when Malcy values us at 30-35p post Nervesa 2 he is saying we are worth £130-£150 million. With all our other assets, low costs, high cash balance & high end gas prices in Italy, I don't think he is off the mark. Not for nothing does he say Sound Oil are his 'nailed on bankers'.
Crude...........this is our time. We've watched other companies hog the limelight - now it is our time to stand in the footlights & proclaim out loud - we did it rrrrrrrr waaaay!
Don't worry, not seriously expecting those permits in Q1, I am well used to Italy by now, but shouldn't be toooo far off now, hopefully. I expect site prep. to continue though. (Religion has a lot to answer for! Atheist, and 100% proud of it). No web cam since 24th!?
Will hopefully be next week as the pad must be close to completion. The time to erect all the equipment and then spud the well in readiness for the site visit 11 / 12 May ?
Exciting times ahead.
Sound Oil, the Mediterranean focused upstream oil and gas company, is pleased to announce that it has today signed a Letter of Intent with Drillmec Spa for the exclusive use of an AHEAD 375 Drilling Rig in Italy for both the SMG and Laura wells in 2015.
"Laura and SMG are both existing gas discoveries which the Company plans to re-drill in 2015, with a combined NPV10 in excess of Euro 100 million.
The selection of this highly automated, electrically powered, hydraulic rig, with its minimal noise output and zero emissions, reflects Sound Oil's continued commitment to safety and the environment."
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