Last checked at 23 Jan 2012 15:32
23 January 2012
Sound Oil plc
("Sound Oil" or "the Company")
Operations Update - Casa Tiberi -1, Italy and Cataka -1, Indonesia
Sound Oil, the upstream oil and gas company with assets in Italy and Indonesia, announces the following update on its current operations.
Montemarciano Permit, Casa Tiberi -1, Ancona, Italy (Sound Oil 100%)
Sound Oil is pleased to confirm that, the Casa Tiberi-1 well has been re-entered and the planned test over the interval 571-581 metres successfully completed. The well flowed gas with a final rate of 37,850 scmd on a 5/16" choke (approximately 1.3 MMscfd). The data from the test will be studied in detail to assess the production potential of the well. The good gas quality and the nearby presence of a low pressure gas network provide an opportunity for a commercial fast-track development of this discovery. A further announcement will follow once the test results have been fully analysed and commercial alternatives explored. In the meantime, an application to extend the permit for a further three years has been submitted to the relevant authorities.
Citarum PSC, Java, Indonesia (Sound Oil 20%)
Sound Oil has been advised by the Operator that the Cataka-1 exploration well on the Citarum PSC, Java, Indonesia has encountered unstable formation in the top hole section, necessitating a sidetrack. The sidetrack hole has already been drilled to the casing depth at 1,397 feet and the 13 3/8ths casing set and cemented. Now that this part of the unstable formation has been cased off, the well will drill ahead to the objective at 6,995 feet as originally planned. It is estimated that at least two additional weeks will be needed to complete operations beyond the planned 21 day programme.
Gerry Orbell, Sound Oil's Chairman and Chief Executive, commented:
"The planned gas test at Casa Tiberi is part of our evaluation to determine the commercial viability of this discovery. The results so far are encouraging and we will know more in the coming weeks as they are fully integrated with our other work.
In Java, Pan Orient has now set the casing over much of the problem interval that was encountered in the top hole. We expect the Operator will be able to drill ahead to test the hydrocarbon potential of this exciting exploration prospect".
For further information please contact:
Sound Oil Gerry Orbell, Chairman and 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 |
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. "scmd" means standard cubic metres per day and "MMscfd" means million standard cubic feet per day.