Indonesia Activity update

RNS Number : 1400W

Sound Oil PLC

15 November 2010

 



For immediate release                                                                                              15 November 2010

Sound Oil plc

Indonesia Activity update

Sound Oil is pleased to report that a recent change in the Bangkanai PSC and ownership has brought forward drilling of two exploration wells and implementation of the Kerendan gas field Plan of Development (POD).

Salamander Energy plc has announced that it has acquired the entire share capital of Elnusa Bangkanai Energy Limited (EBE) which now holds a 69% working interest and operatorship of the Bangkanai PSC.  Sound Oil's 5% interest in the Bangkanai PSC, held through its wholly owned subsidiary Mitra Energia Bangkanai Limited, continues to be carried for all expenditure until first gas from the Kerendan field and for two exploration wells.

The new operator has announced plans for early drilling commencing in early 2011.  Salamander also expects to progress the development of the Kerendan field leading to first production in 2014.  Negotiations for gas sales to PLN, the Indonesian State power company, are at an advanced stage.

Gerry Orbell, Sound Oil's Chairman and Chief Executive comments:

"This is a very positive step for Sound which has a 5% carried interest in the Bangkanai PSC.  Salamander are an experienced operator in Indonesia and they have stated that they will be drilling two exploration wells on behalf of the partners in our PSC in the first part of 2011.  Additionally, they expect to bring on stream the Kerendan Gas Field in 2014 which will monetise our interests there. 

Elsewhere in Indonesia, Sound will be participating in three wells in the Citarum PSC, Java (Sound 20%) in the first half of 2011.  With involvement in 5 exploration wells before mid 2011, Sound is in for a very active New Year."

Enquiries:

Sound Oil plc                                                                      Tel: [phone]

Gerry Orbell, Chairman               

finnCap                                                                               Tel:  [phone]

Sarah Wharry / Henrik Persson (corporate finance)

Tom Jenkins / Joanna Weaving (corporate broking)                                

Buchanan Communications

Tim Thompson/Ben Romney/Chris McMahon                  Tel: [phone]                            

 

END

 

 

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