Last checked at 6 Mar 2012 07:00
6 March 2012
Sound Oil plc
("Sound Oil" or "the Company")
Operations Update - Italy
Sound Oil, the upstream oil and gas company with assets in Italy and Indonesia, is pleased to announce the following update for several of its projects in Italy.
Montemarciano Permit, Marche (Sound Oil 100%)
The Casa Tiberi-1 well has been re-entered in order to undertake additional testing of the perforated zone at 571-581 m. Operations are scheduled for 5 days. The objective of the operations is to provide additional stabilized flow rate data in relation to gas export options. The data obtained will enable a decision to be taken on commerciality of the discovery and to apply for establishment of a production concession. Options for commercialisation include the use of electricity generators and direct export to a local low pressure gas distribution network.
Rapagnano Concession, Marche (Sound Oil 100%)
The Company will this week make a technical presentation on the Rapagnano production project to the Marche regional authorities in connection with the approval of its Environmental Impact Assessment for the project. The project remains on track for final approval in Q2 2012.
Badile Permit, Lombardia (Sound Oil 100%)
All geological and geophysical studies for the project have been completed. Dependent on the mapping model used, the Badile prospect has been determined to have a range of P50 prospective resources from 170-226 Bscf (gas case) or 18-23 MMbo (oil case). A surface location has been identified and a detailed well plan is in preparation. The project is on schedule for a drilling application to be submitted in early Q2 2012 with a view to drilling in 2013. A farm-out campaign for the well has commenced and will include a presentation at the APPEX prospect fair in London, 6-8 March.
Gerry Orbell, Sound Oil's Chairman and Chief Executive commented:
"Italy is progressing very well. The large Badile prospect close to Milan is ready to drill in all respects and we are now offering this opportunity to industry for farm out. We expect the present series of flow tests at Casa Tiberi will allow a decision to be made on commerciality in the near future once we have fully evaluated the results."
For further information please contact:
Sound Oil Gerry Orbell, Chairman & Chief Executive James Parsons, Chief Financial Officer
| Tel: +44 (0)1372 365745
|
Smith & Williamson - Nominated Adviser Azhic Basirov David Jones
| Tel: +44 (0)20 7131 4000 |
Investec - Broker David Flin
| Tel: +44 (0)20 7597 4000 |
Buchanan - Financial PR Tim Thompson Ben Romney Helen Chan
| Tel: +44 (0)20 7466 5000
|
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. "Bscf" means billions of standard cubic feet of gas; MMbo means million barrels of oil; "P50" refers to a 50% chance of finding a given volume and is consistent with SPE (The Society of Petroleum Engineers) guidelines.