Operations Update

RNS Number : 1296S

Sound Oil PLC

15 November 2011

 



15 November 2011

Sound Oil plc

("Sound Oil" or "the Company")

Operations update - Montemarciano Permit

Gas discovery at Casa Tiberi-1 exploration well Ancona, Italy

Sound Oil, the upstream oil and gas company with assets in Italy and Indonesia, announces that the Casa Tiberi-1 exploration well in Italy, which is operated by the Company's wholly-owned subsidiary Apennine Energy srl, has been successfully drilled to a total depth of 715 m measured depth.  Logging of the well has established a gross hydrocarbon column of 14.9 m, comprising several high quality gas bearing reservoir sands.  Sound Oil is suspending the well as a gas discovery pending future work in the coming months, to determine the extent and commerciality of the accumulation.

By drilling the well to 715 m MD, Sound Oil has completed its original farm-in obligations on the Montemarciano Permit and has earned its 75% working interest in the licence.

Subsequently its partner SARP, a small private Italian company which holds a 25% working interest in the licence, has withdrawn from the well and assigned its interest in the well to Sound Oil meaning the Company therefore now holds a 100% working interest in the gas discovery and a 75% interest in the surrounding permit.

Gerry Orbell, Chairman and CEO of Sound Oil, commented:

"We are pleased that the drilling of Casa Tiberi-1 has resulted in a gas discovery from our first operated exploration well in Italy.  We will evaluate the results going forward and consider how best to bring this accumulation on-stream which could include the use of the gas processing and electricity generating equipment that the Company owns at the Marciano location."

For further information please contact:

Sound Oil Gerry Orbell, Chairman and Chief Executive Michael Cope, Chief Operating Officer	Tel: [phone]
Smith & Williamson - Nominated Adviser Azhic Basirov David Jones	Tel: [phone]
Investec - Broker Charles Batten David Flin Adam Strachan	Tel: [phone]
Buchanan Tim Thompson Ben Romney Helen Chan	Tel: [phone]

The information contained in this announcement has been reviewed by Dr M. J. Cope BSc PhD CGeol FGS, a qualified petroleum geologist.

 

END

 

 

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