New Badile CPR

RNS Number : 9346P

Sound Oil PLC

08 October 2013

 



 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	[e-mail]
Smith & Williamson - Nominated Adviser Azhic Basirov David Jones	Tel: [phone]
Peel Hunt - Broker Richard Crichton Charles Batten	Tel: [phone]

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.

 

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