12 June 2014
Sound Oil plc
("Sound Oil" or the "Company")
Laura Gas Discovery - Permit Award
Sound Oil, the European / Mediterranean focused upstream oil and gas company, is pleased to announce that it has received the formal award of the D.R74.AP Permit (previously the D150DR-CS Permit) from the Italian Ministry of Economic Development.
The permit, owned 100% by Sound Oil, contains the Laura field, a discovery located 4km offshore in the Gulf of Taranto, Southern Italy, which was discovered by ENI in 1980. The Laura discovery was previously successfully tested, delivered a stabilized rate of 10 MMscf per day and has an independently assessed resource of 30 Bscf (P50).
Following successful analysis of the existing seismic data and well logs, the Company plans to reach the reservoir from an onshore location using extended reach drilling technology and without further offshore seismic acquisition. As with all drilling in Italy, the well will be subject to an Environmental Impact Assessment.
James Parsons, Sound Oil's Chief Executive Officer, commented:
"Laura is one of five game-changing assets in our Italian drilling programme, has an NPV10 of Euro 66 million and is capable of generating significant free cash flows. The award of this permit is another milestone for the Company in Italy.
The drilling of this offshore reservoir from onshore using extended reach drilling technology is an innovative and environmentally friendly approach which will ensure zero impact to the marine environment whilst also reducing development capital and operating expenditure."
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 |
Note
The information contained in this announcement has been reviewed by the Managing Director of Sound Oil's Italian subsidiary, Mr L. Madeddu BSc, a qualified petroleum geologist and member of the Society of Petroleum Engineers.
MMscf means million standard cubic feet of gas; Bscf means billions of standard cubic feet of gas; NPV10 refers to a net present value at a discount rate of 10%; and "P50" refers to a 50% chance of finding a given volume and is consistent with SPE (The Society of Petroleum Engineers) guidelines.
