Sound Energy Regulatory News (SOU)

28 January 2014

Sound Oil plc

("Sound Oil" or the "Company")

Land Lease Agreement

Sound Oil, the European / Mediterranean focused upstream oil and gas company, announces that it has signed a land lease contract for the forthcoming well addressing the Nervesa discovery on the Carita permit in Northern Italy.

As previously announced, following the first Nervesa appraisal well in summer 2013, the Company plans to drill a second well to appraise the Southern limb of the Nervesa discovery once final governmental approval has been obtained. In preparation for well spudding during the first half of 2014, the Company has secured use of a 18,300m2 plot of land for a period of two years. The location of this plot has enabled the Company to optimise the well trajectory, including minimising the well deviation.

James Parsons, Sound Oil's Chief Executive Officer, commented:

"Preparations for the second appraisal well on the 24 Bscf Nervesa gas discovery continue. The discovery has an estimated NPV10 of circa US$66 million and is expected to provide material cash flows to the Company from 2015."

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The information contained in this announcement has been reviewed by Sound Oil's Italian Managing Director, Luca Madeddu, a qualified petroleum geologist.

The gas resource volumes and values mentioned above are based on P50 contingent resource estimates.

Bscf means billion standard cubic feet of gas; NPV10 refers to a net present value at a discount rate of 10%.