Sound Energy Regulatory News (SOU)

1 December 2011

Sound Oil plc

("Sound Oil" or "the Company")

Completion of Private Placement

Further to the announcement made on 10 November 2011, Sound Oil, the upstream oil and gas company with assets in Italy and Indonesia, announces the completion of a private placement through Astin Capital Management Limited ("Astin"). The private placement is structured across two tranches and involves a target new equity investment of £4 million with the potential for this investment to be increased up to a total of £10 million.

Following negotiation under the Heads of Terms, the first tranche of 100 million ordinary shares will be issued on 9 December priced at 2 pence per share (representing an initial placement of £2 million) with associated warrants exercisable also at 2 pence. The second tranche of up to £8 million is anticipated to be issued in February 2012, priced at 90% of the average price over the preceding 40 trading days. The associated warrants will be exercisable at 110% of the 40 trading day average price.

All warrants are issued at a ratio of 6 warrants for each 10 ordinary shares and are exercisable at any time during their three year term.

The private placement stipulates that Astin (including connected funds and investors) will not acquire more than 25% of the issued share capital and that the Company may elect not to increase the total placement above £4 million should the price on the day prior to issue fall to 1.6 pence or below.

The Company intends to use the funds raised for drilling operations, including the Nervesa discovery, during 2012.

Commenting on the above Gerry Orbell, Sound Oil's Chairman and CEO said:

"This private placement maintains Sound Oil's strong funding position following the Celtique acquisition and enables the execution of our high impact drilling programme. We are pleased to be able to complete the first tranche earlier than planned."

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