8 October 2013
Sound Oil plc
("Sound Oil" or the "Company")
New Badile CPR
Sound Oil, the European / Mediterranean focused upstream oil and gas company, is pleased to announce a significant upgrade in the Net Present Value of the Badile exploration gas prospect, onshore Po Valley, Italy.
ERC Equipoise Limited ("ERC") have completed a full independent Competent Person's Report ("CPR") of this prospect.
Badile is Sound Oil's 100% owned and operated exploration prospect, located some 45 km south-west of the geologically analogous "Malossa" gas field - which produced a total of 177 Bscf gas with associated light condensate.
The CPR has confirmed a Best estimate NPV10 of Euro 486 million, an increase of 60% on the previous CPR (which was Euro 302 million). The CPR has also identified a High Case NPV10 of Euro 1,745 million and a Low Case NPV10 of Euro 101 million.
Underpinning these estimates are gross prospective resources of 178bscf equivalent (106 Bscf of gas plus 12 MMbbl of condensate) with a High Case estimate of 673bscfe (397 Bscf of gas plus 46 MMbbl of condensate) and a Low Case estimate of 46bscfe (28 Bscf of gas plus 3 MMbbl of condensate). The study has also confirmed a 22% geological chance of success for the prospect.
James Parsons, Sound Oil's Chief Executive Officer, commented:
"Badile remains the largest and most strategic asset in Sound Oil's portfolio. We continue to prepare the Company for drilling this asset with a view to capturing the upside NPV, which now exceeds US$2 billion."
For further information please contact:
Sound Oil James Parsons, Chief Executive Officer |
[email protected] |
Smith & Williamson - Nominated Adviser Azhic Basirov David Jones |
Tel: +44 (0)20 7131 4000 |
Peel Hunt - Broker Richard Crichton Charles Batten |
Tel: +44 (0)20 7418 8900 |
The information contained in this announcement has been reviewed by Sound Oil's Italian Managing Director, Luca Madeddu, a qualified petroleum geologist.
Scmd means standard cubic metres of gas per day; MMscfd means million standard cubic feet of gas per day; Bscf means billion standard cubic feet of gas; Bscfe means billion standard cubic feet of gas equivalent; MMbbl means million barrels; NPV10 refers to a net present value at a discount rate of 10%; Low, Best and High Case Estimates refer to finding a given volume consistent with SPE (The Society of Petroleum Engineers) guidelines on Prospective Resources.
