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8 May 2012 13:17
8 May 2012
Sound Oil plc
("Sound Oil" or "the Company")
Casa Tiberi Discovery: Application for the San Lorenzo Production Concession
Sound Oil, the upstream oil and gas company with assets in Italy and Indonesia, is pleased to announce that the Company has formally applied to the Italian authorities for the San Lorenzo Production Concession, with the target to develop and produce the Casa Tiberi gas discovery.
The proposed development plan contemplates an initial gas production phase followed by the generation of electricity for the local network. Once awarded the first phase of development requires the fast-track installation of a processing plant which will utilise a number of the Marciano production facilities. The gas will be exported to the local grid network with a connection to the low pressure (4 bar) flowline located close to the site. Overall the phased development is designed to maximise the recovery of gas reserves.
Gerry Orbell, Sound Oil's Chairman and Chief Executive, commented: "Our application to produce Casa Tiberi gas is a very pleasing first step in monetising our extensive portfolio of Italian discoveries. We expect Rapagnano to be next on the list followed by the large discoveries at Nervesa and Strombone later in the year."
For further information please contact:
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 |
Investec - Broker David Flin
| Tel: +44 (0)20 7597 4000 |
Buchanan Tim Thompson Ben Romney Helen Chan
| Tel: +44 (0)20 7466 5000
|
Notes:
a) In November 2011, the Casa Tiberi-1 well discovered gas. It was re-entered in January 2012 and the interval 571-581 metres perforated and this successfully flowed gas with a final rate of 37,850 scmd on a 5/16" choke (approximately 1.3 MMscfd). A second test was conducted in March 2012 and the well flowed as planned at a stabilised rate of 8,000 scmd (0.28 MMscfd) on a 8/64ths inch choke with a flowing tubing head pressure of 54 bar.
b) The Casa Tiberi gas discovery is located within the San Lorenzo Concession (Sound 100%) which in turn is within the Montemarciano Permit (Sound 75%, SARP 25%). The Permit is close to Ancona in the Marche region, Italy.c) scmd = standard cubic metres per dayMMscfd = millions of standard cubic feet per day
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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