Sound Energy Regulatory News (SOU)

25 July 2011

Sound Oil plc

("Sound Oil" or "the Company")

Operations update

Sound Oil, the upstream oil and gas company with assets in Italy and Indonesia, announces the following update on current operations.

Italy

Marciano-1 ST Well (Sound Oil 100%)

The Company has received a reservoir engineering report undertaken by AGR which has analyzed pressure data from the test of the upper zone at Marciano (1283-1288m) in respect of reserve estimates and reservoir parameters. Unfortunately the initial gas in place in the tested reservoir interval is estimated to be insufficient for commercial production. Therefore present operations at the site will cease pending a future review of the permit.

Montemarciano Permit (Sound Oil farm-in 75%)

An application to commence the site construction for the Casa Tiberi-1 exploration well was submitted to the Ministry of Economic Development on 20 July. Civil works are expected to start before 24 August this year with the intention to spud the well no later than 90 days from the start of site preparation.

Badile Permit (Sound Oil 100%)

The interpretation of the 3D seismic data is underway and preliminary results are expected by the end of July.

Indonesia

Citarum PSC (Sound Oil 20%)

The Operator of the PSC, Pan Orient Energy, reports that well site construction has started at the exploration location at Jatayu and is expected to be completed in 2-3 weeks. Construction will then begin immediately on the second exploration well site at Cataka. These sites are for the next two wells on this permit later in the year. The third well location is currently being reviewed by the Operator and Authorities.

Commenting on this update Gerry Orbell, Sound Oil's Chairman and Chief Executive Officer said:

"The news from Marciano is clearly disappointing, especially after such an encouraging initial flow rate. The Marciano project was, however, a small part of the value of our portfolio. We will now focus our efforts on the four well programme we expect to be starting in the Autumn and also preparing for pending applications in Italy which we expect to be awarded shortly."

For further information please contact:

The information contained in this announcement has been reviewed by Dr M. J. Cope BSc PhD CGeol FGS, a qualified petroleum geologist.