7 Jan 2013 07:00

7 January 2013
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Sound Oil plc
("Sound Oil" or "the Company")
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Rapagnano Flow Rates
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Sound Oil, the Italian focused upstream oil and gas company is pleased to confirm a successful initial operation at the Rapagnano field in Italy, with flow rates and pressure in line with expectation.
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Following site clearance, the Rapagnano-1 well (in the Marche Region) was re-entered and operations to isolate the upper perforated interval (1418-1430 m, A2 reservoir) and re-open the lower perforated interval (1652.5-1658.5 m, Sabbie reservoir) were successfully completed using coiled tubing.
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Whilst testing will continue for the next 24 hours, a stabilized rate of 14,000 Scmd (0.5 MMscfd) with a flowing well head pressure of 19.3 Bar (280 psi) has already been confirmed. The gas is also confirmed as dry, with no trace of water from the reservoir.
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The pressures and flow rates are fully consistent with the gas sales agreement and with the Company's estimates to produce 1.3 Bscf over a 13 year field life.
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The well test will now be completed after which the equipment will be demobilized to allow continuation of the facilities re-vamping and construction of a short export pipeline to the nearby distribution grid. First commercial production is therefore expected to commence by the end of the month.
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James Parsons, Sound Oil's Chief Executive Officer, commented:
"The Company continues on track to achieve the strategic milestone of first commercial gas, having successfully re-entered the well and established a stable flow rate. This initial cash inflow will make a substantial contribution to overhead costs and permanently establishes the Company as a gas producer.
This is the first step in building a track record of operational success. The Company will now focus on finalising the well test and preparing for the forthcoming Nervesa appraisal well."
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For further information please contact:
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Sound Oil James Parsons, Chief Executive Officer  | j.parsons@soundoil.co.uk  |
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 Helen Chan Tom Hufton  | 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. Units of flow are expressed as follows:Â Â MMscfd means millions of standard cubic feet of gas per day; Scmd means standard cubic meters of gas per day; Bscf means billions of standard cubic feet of gas. Units of pressure are expressed in pounds per square inch (psi; 14.5 psi = 1 Bar).
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