Sound Energy Regulatory News (SOU)

14 May 2007 12:42

Sound Oil PLC14 May 2007 14 May 2007 SOUND OIL PLC INCIDENT AT PASUNDAN-1 DRILLING SITE Sound Oil plc (AIM:SOU) is a participant (through its wholly owned subsidiaryMitra Energia Citarum Limited) as a 20% shareholder in BPREC, the operatingcompany (the "Operator") that is drilling the Pasundan-1 exploration well,located approximately 50 km southeast of Jakarta, Java, Indonesia. On 12 May 2007 at 0645 (Indonesian Western Time, 0030 BST) an incident occurredon the Pasundan-1 drilling rig that led to cessation of drilling activities.While operating below the 30-inch conductor, damage occurred to surface facilities of the rig caused by uncontrolled movement of equipment. There were no injuries to any personnel on the rig or the wellsite, downhole conditionsremained stable and there was no impact on the environment. Currently the Operator is dealing with the incident according to its agreedaccident investigation procedures and is preparing the necessary report toBPMigas, the regulatory authority. A full inspection of the damage to the rigand an estimate of repairs are being undertaken. The Operator's preliminaryestimate is that repairs will take approximately 10 days. During this periodBPREC will not be liable for rig contract costs. Gerry Orbell, Chairman of Sound Oil commented, "This incident is an unfortunatestart to the drilling of Pasundan No 1 but at least no one was hurt. Apart fromthe delay, the incremental cost of this incident to Sound Oil is expected to beminimal". Contacts Gerry Orbell, Sound Oil plcTel +44 (0) 7903 861145 Azhic Basirov/David Jones, Smith & Williamson Corporate Finance LimitedTel: +44 (0) 207 131 4000 Tim Thompson/Nick Melson, Buchanan CommunicationsTel +44 (0) 207 466 5000 This information is provided by RNS The company news service from the London Stock Exchange