12 Sep 2012 14:54

12 September 2012
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Sound Oil plc
("Sound Oil" or "the Company")
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Operations Update - Indonesia
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Sound Oil, the upstream oil and gas company with assets in Italy and Indonesia, is pleased to announce the following update on its operations in Indonesia.
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Bangkanai PSC (Sound 5%):
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Operations to drill four development wells on the Kerendan gas field in Kalimantan are progressing well. The first well (K-4) has completed drilling and setting of casing in the uphole section, consistent with the schedule. The rig has now skidded to the second location (K-6) to drill the corresponding uphole section. Three of the wells will be batch drilled and the fourth will be drilled as a single operation. Each well will be drilled as a deviated hole from the Sungai Lahei well pad located immediately west of the field.
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Sound Oil's share of proved and probable reserves (proved undeveloped) in the Kerendan field are 6.685 Bscf and 0.070 MMbo (condensate)Â (Fugro Robertson CPR, October 2011); equivalent to 1.184 Mmboe. The estimated NPV10 of the field to Sound Oil is some US$ 6.4 million.
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For further information please contact:
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Sound Oil Gerry Orbell, Chairman & Chief Executive Michael Cope, Chief Operating Officer  | Tel: +44 (0)1372 365745  |
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 Ben Romney Helen Chan  | Tel: +44 (0)20 7466 5000  |
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Notes:
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1. 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.
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2. The basis of the reserve and resource estimates referred to above is consistent with SPE (The Society of Petroleum Engineers) guidelines and are taken from in a Competent Person's Report prepared for Sound Oil by Fugro Robertson Limited in October 2011. Â "MMbo" means million barrels of oil; "MMboe" means millions of barrels of oil equivalent; "Bscf" means billions of standard cubic feet of gas; NPV10 means the net present value of estimated recoverable volumes discounted at 10%.
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