Sound Energy Regulatory News (SOU)

6 March 2013

Sound Oil plc

("Sound Oil" or the "Company")

Initiation of Open Offer

As previously announced, Sound Oil are pleased to initiate an open offer to eligible shareholders to raise up to £1 million (before expenses). This involves up to 12,386,968 Open Offer Shares at an issue price of 8.073p per New Ordinary Share. The Open Offer is not being underwritten.

In July 2012, the Company announced the commencement of a private placement process under which the Company would raise new equity funds in monthly instalments over a 7 month period at an effective issue price determined by the volume weighted average price ("VWAP") of each successive period. The Company also announced that at the end of the private placement, shareholders would be offered the opportunity of participating in an open offer up to a maximum of £1 million priced at the VWAP for the entire period of the private placement. As previously announced, the private placement has concluded and accordingly the Company is now making the Open Offer to Eligible Shareholders on the basis of 43.15823 Open Offer Shares for every 1,000 Existing Ordinary Shares held at the Record Date. The net proceeds of the Open Offer will be used for progressing the Company's projects in Italy and for general working capital purposes.

The expected timetable of the principal events in relation to the Open Offer is as follows:

A circular will be posted to Shareholders shortly setting out in more detail the background to and reasons for the Open Offer and its terms. All capitalised terms in this announcement are as defined in the circular which will be available on the Company's website at www.soundoil.co.uk.

For further information please contact: