Rapagnano Concession Update

RNS Number : 9119M

Sound Oil PLC

24 August 2011

 



24 August 2011

Sound Oil plc

("Sound Oil" or "the Company")

Rapagnano Concession update

Sound Oil (AIM:SOU), the upstream oil and gas company with assets in Italy and Indonesia, announces that the Italian Ministry for Economic Development has awarded the Rapagnano Concession, located in the Marche Region of central Italy, to the Company's wholly-owned subsidiary Apennine Energy srl.  The award is subject to the acceptance of any environmental impact assessment that may be required by the Marche regional authorities. In view of the previous production history at the site which is within an industrial area, the Company anticipates that this acceptance will be granted.

The Rapagnano gas field on the concession had previously produced 4.1 Bscf of gas into the national network until it was shut-in in 2001.  A recent reservoir engineering study by consultants Senergy (GB) Ltd has estimated that an additional 2.45 Bscf of gas is potentially recoverable from the field.  Apennine's objective will be to put the field back on stream at an approximate estimated cost of US$0.5 million with expected first revenue in Q2 of 2012.

Commenting on the news, Gerry Orbell, Sound Oil's Chairman and Chief Executive, said:

"This is very encouraging news.  The Italian Ministry has awarded the Rapagnano field to us at no cost with the expectation that we can put it back on stream quickly.  We intend to produce to the national gas network through the connection which is on site and provide an early cash flow with minimal investment."

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 Communications 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.  The recoverable gas estimate referred to above represents a best estimate of reserves consistent with SPE (The Society of Petroleum Engineers) guidelines.  "Bscf" means billion standard cubic feet of gas.

 

END

 

 

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