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17 Mar 2015 07:00
17 March 2015
Sound Oil plc
("Sound Oil" or the "Company")
Badile EIA Approval
Sound Oil, the European / Mediterranean focused upstream oil and gas company, is pleased to announce the approval of the Environmental Impact Assessment ("EIA") for the Badile exploration well from the Lombardy Regional Government.
The drilling authorisation from the Italian Ministry of Economic Development is expected to follow with the endorsement of the Lombardy Region.
This approval is an important step in the local permitting process, enabling the Company to prepare for the forthcoming exploration well. Preparations for drilling, including the identification and negotiation of a farm in, continue.
As previously announced, the Company has purchased a plot of industrial land in the Lombardy region for the well site and a number of long lead items including the wellhead are now ready to be delivered.
James Parsons, Sound Oil's Chief Executive Officer, commented:
"Badile remains the largest and most strategic asset in our portfolio with an independently assessed best case estimate of 178 Bscf equivalent.
This approval re-affirms Sound's ability to progress within the Italian regulatory system and positions the asset ready for potential farm in partners.
The gas produced from Badile (following a successful exploration well and production concession award) would feed in to the energy hungry domestic market in Italy which has maintained pricing resilience against a backdrop of falling commodity prices."
For further information please contact:
Vigo Communications - PR Adviser Patrick d'Ancona Chris McMahon
| Tel: +44 (0)20 7016 9573 |
Sound Oil James Parsons, Chief Executive Officer
| j.parsons@soundoil.co.uk
|
Smith & Williamson - Nominated Adviser Azhic Basirov David Jones Ben Jeynes
| Tel: +44 (0)20 7131 4000 |
Peel Hunt - Broker Richard Crichton Charles Batten
| Tel: +44 (0)20 7418 8900 |
The information contained in this announcement has been reviewed by Sound Oil's Italian Managing Director, Luca Madeddu, a qualified petroleum geologist. Bscf means billion standard cubic feet of gas; MMbbl means million barrels; best case estimates refer to finding a given volume consistent with SPE (The Society of Petroleum Engineers) guidelines on Prospective Resources. The best case estimate included in this announcement of gross prospective resources of 178 Bscf equivalent comprises 106 Bscf of gas and 12 MMbbl of condensate. The independent assessment referred to above estimated a 22% geological chance of success for the prospect.
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