24 November 2015
Sound Energy plc
("Sound Energy" or the "Company)
Badile Cost Reduction
Sound Energy, the Mediterranean focused upstream oil and gas company, is pleased to announce a significant reduction in the estimated cost of the forthcoming Badile exploration well.
The Company has now completed a selective re-tendering of the Badile well programme with a view to capturing cost reductions resulting from the increased availability of rigs and other services in the current low oil price environment. This re-tendering has secured an immediate Euro 5 million reduction in the expected cost of the well, reducing the well from a total cost of Euro 30 million (including completion and testing) to Euro 25 million on a 100% basis.
The Company confirms that it still expects to receive final authorisation to drill the Badile exploration well at the end of 2015 or early in 2016 and that it continues with its efforts to identify and negotiate a farm in partner.
James Parsons, Sound Energy's Chief Executive Officer, commented:
"Badile remains the largest and most strategic asset in our portfolio with an independently assessed mid case estimate of 178 Bscf equivalent.
The Company, with its Mediterranean onshore gas strategy, has remained largely sheltered from current low oil prices and is now also benefiting from reductions to its capital costs as a result of increased availability of equipment and service providers.
Securing this significant structural cost reduction is an important step prior to farming out the asset."
For further information please contact:
Vigo Communications - PR Adviser Patrick d'Ancona Chris McMahon |
Tel: +44 (0)20 7016 9573 |
Sound Energy James Parsons, Chief Executive Officer |
[email protected] |
Smith & Williamson - Nominated Adviser Azhic Basirov David Jones Ben Jeynes |
Tel: +44 (0)20 7131 4000 |
Cantor Fitzgerald Europe - Broker Sarah Wharry David Porter |
Tel: +44 (0)20 7894 8896 |
Bscf means billion standard cubic feet of gas; Best Estimate refers to finding a given volume consistent with SPE (The Society of Petroleum Engineers) guidelines on Prospective Resources.
