9 June 2014
Sound Oil plc
("Sound Oil" or the "Company")
Rapagnano Reserve Upgrade
Sound Oil, the European / Mediterranean focused upstream oil and gas company, is pleased to confirm an increase in its internal proven reserve estimates at the onshore Rapagnano gas field in Italy.
Since achieving first gas in May 2013, the Rapagnano gas field has produced over 4 MMscm (0.14 Bscf) without a lost time incident. This is significantly ahead of the Company's original production estimates.
At the end of May 2014, the Company completed a planned maintenance shutdown which provided the opportunity to measure the bottom hole pressure in the Rapagnano production well and to use the data to revise the Company's estimates of remaining reserves and field life.
After a 48 hour build-up period the bottom hole pressure survey has confirmed that gas expansion drive is active in the reservoir with no observed water influx.
Based on this data the Company has upgraded its internal estimate of proven (1P) reserves at Rapagnano to 30 MMscm, a 31% increase on the year-end 2013 estimate of 22.9MMscm (0.81 Bscf). The Company's proven and probable (2P) reserve estimate for Rapagnano remain unchanged at 36.2MMscm (1.28 Bscf), with production expected to continue on an extended plateau rate for at least another 12 years.
Chief Executive Officer James Parsons commented:
"Our strategy of monetizing our smaller production assets has been borne out by these very pleasing results at Rapagnano. Our next asset to come on stream will be the Casa Tiberi field with production start-up expected shortly."
For further information please contact:
Sound Oil James Parsons, Chief Executive Officer Stuart Joyner, Chief Financial Officer |
[email protected] [email protected] |
Smith & Williamson - Nominated Adviser Azhic Basirov David Jones Ben Jeynes |
Tel: +44 (0)20 7131 4000 |
Peel Hunt - Broker Richard Crichton Charles Batten |
Tel: +44 (0)20 7418 8900 |
1P means proven reserves; 2P means proved plus probable reserves; MMscm means million standard cubic metres; MMscf means million standard cubic feet; Bscf means billion standard cubic feet. The reserves estimates shown above are based on SPE (Society of Petroleum Engineers) guidelines and have been reviewed by Luca Madeddu, Sound Oil's Italy Managing Director and a member of the Society of Petroleum Engineers.
