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29 Sep 2011 07:00
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29 September 2011
Sound Oil plc
("Sound Oil" or "the Company")
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Award of Costa Del Sole Permit, Sicily, Italy
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Sound Oil, the upstream oil and gas company with assets in Italy and Indonesia, is pleased to announce the award of the Costa Del Sole Permit, onshore Sicily to the Company's wholly owned subsidiary Apennine Energy srl. Apennine Energy will be the 100% interest holder and operator of the permit. The award is made by the Department of Energy of the Sicily Region subject to the submission and acceptance of an Environmental Impact Assessment. Apennine Energy will submit the necessary documentation in the next few days.
Costa Del Sole is located in the southwest coastal region of Sicily in an area of known heavy oil discoveries and producing fields. The permit contains the Manfria-1bis oil discovery which flowed at a rate of 150 bopd and produced a cumulative 6,000 barrels during testing. It is estimated to contain P50 contingent resources of approximately 2 MMbo. An un-drilled prospect (Cielo) is adjacent to the discovery and could contain a similar resource if successfully drilled. Cielo appears to be in structural continuity with Manfria indicating a possible shared oil water contact and increased chance of hydrocarbon charge to the prospect. Both discovery and prospect are located approximately 10 km from the Gela field and heavy oil refinery. The forward strategy for the block would be to acquire, reprocess and interpret legacy seismic data in order to define drilling locations for possible appraisal and exploration wells.
Commenting on this announcement Gerry Orbell, Sound Oil's Chairman and CEO said:
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"I am pleased that this award continues the expansion of the Apennine portfolio of appraisal and development assets and provides us with additional opportunities for early drilling and revenue generation."
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For further information please contact:
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Sound Oil Gerry Orbell, Chairman and Chief Executive Michael Cope, Chief Operating Officer Β | Tel: +44 (0)1372 365745 Β |
Smith & Williamson - Nominated Adviser Azhic Basirov David Jones Β | Tel: +44 (0)20 7131 4000 |
Investec - Broker Charles Batten David Flin Adam Strachan Β | Tel: +44 (0)20 7597 4000 |
Buchanan Communications Tim Thompson Ben Romney Helen Chan Β | Tel: +44 (0)20 7466 5000 Β |
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The information contained in this announcement has been reviewed by Dr M. J. Cope BSc PhD CGeol FGS, a qualified petroleum geologist. The basis of the contingent resource estimate referred to above is consistent with SPE (The Society of Petroleum Engineers) guidelines. "MMbo" means million barrels of oil; "bopd" means barrels of oil per day.
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