Last checked at 8 Nov 2012 07:00
8 November 2012
Sound Oil plc
("Sound Oil" or "the Company")
Nervesa EIA Approval
Sound Oil, the Italian focused upstream oil and gas company, is pleased to announce the receipt of formal approval from the Treviso Province authorities of the Environmental Impact Assessment ("EIA") for the Nervesa appraisal well.
It is expected that the final approval from the Italian Ministry of Economic Development will follow in approximately five weeks. Formal operations at the site will then commence with a view to commencing drilling around the end of the year.
James Parsons, Sound Oil's Chief Executive Officer commented:
"Nervesa is a flagship project for Sound Oil with an independently estimated value approximately equivalent to the Company's current market capitalisation.
This approval starts the countdown to well spud, which Sound Oil is targeting around the end of the year."
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 Tim Thompson Helen Chan Tom Hufton
| Tel: +44 (0)20 7466 5000
|
Note
The independently estimated value mentioned above refers to a success case basis value of approximately US$60 million (NPV10) based on a P50 contingent resources estimate of 20.7 Bscf included in a Competent Person's Report prepared by Fugro Robinson Limited in October 2011 (this report is available on the Company's website: www.soundoil.co.uk). "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.