Last checked at 22 Jan 2013 07:00
22 January 2013
Sound Oil plc
("Sound Oil" or "the Company")
Successful Nervesa "Conferenza Servizi"
Sound Oil, the Italian focused upstream oil and gas company is pleased to announce the successful conclusion of the "Conferenza Servizi" process for the Nervesa appraisal well.
This is the final step of the approval process organized by the Ministry of Economic Development with the participation of the Veneto Region, Treviso Province, Local Council and various local governmental bodies to reach agreement to approve the drilling of the well. Following the successful "Conferenza Servizi" on 21st January, the written "Autorizzazione" approving the appraisal well will now be issued and the Company expects to receive this before the end of this month.
Sound Oil is also pleased to confirm that preparation of the Nervesa well site, to allow access and equipment storage, has now commenced.
James Parsons, Sound Oil's Chief Executive Officer, commented:
"Nervesa is a 21Bscf gas discovery which was discovered by ENI in 1985 and was put into production for several years. The discovery has an independent assessed base case value of circa US$60 million and is a flagship project for the Company.
I am pleased to report that preparatory operations on site have commenced which will accelerate spud of the well once the Autorizzazione is issued. We still expect to receive the written Autorizzazione during January."
For further information please contact:
Sound Oil James Parsons, Chief Executive Officer
| j.parsons@soundoil.co.uk
|
Smith & Williamson - Nominated Adviser Azhic Basirov David Jones
| Tel: +44 (0)20 7131 4000 |
Westhouse Securities - Broker Antonio Bossi Jonathan Haines
| Tel: +44 (0)20 7601 6100 |
Buchanan - Financial PR Tim Thompson Tom Hufton
| Tel: +44 (0)20 7466 5000
|
Notes
1. The Ministry has advised the Nervesa appraisal well will be designated Sant'Andrea-1.
2. The estimated gas resource volume and value mentioned above are based on P50 contingent resources and NPV10 estimates included in a Competent Person's Report prepared by Fugro Robinson Limited in October 2011. "P50" refers to a 50% chance of finding a given volume and is consistent with SPE (The Society of Petroleum Engineers) guideline; NPV10 refers to net present value at a discount rate of 10%; Bscf means billions of standard cubic feet. The information contained in this announcement has been reviewed by Sound Oil's Chief Operating Officer, Dr M. J. Cope BSc PhD CGeol FGS, a qualified petroleum geologist.