Status of d148 DR-CS and d150 CR-CS Permits

RNS Number : 1379M

Sound Oil PLC

10 August 2011

 



For immediate release

10 August 2011

Sound Oil plc

("Sound Oil" or "the Company")

Status of d148 DR-CS and d150 DR-CS Permits

Sound Oil plc, the upstream oil and gas company with assets in Italy and Indonesia, announces that the Ministry of Economic Development in Italy has withdrawn Sound Oil's Assigned Permits d148 DR-CS and d150 DR-CS from the application process to full permit status. This is in compliance with the environmental decree 128/1210 enacted in June 2010 which prevents oil and gas activity within 5 nautical miles of the Italian coast. Sound Oil is considering appealing against this decision through the relevant authority. Sound Oil is one of 9 companies affected so far, involving the withdrawal of 18 permit applications in the Italian coastal zone over the last two months.

Commenting on this Gerry Orbell, Chairman and Chief Executive said:

"The applications for these two permits were made a long time before the  new environmental law was brought in following the BP Deepwater Horizon blowout in the Gulf of Mexico. As it affects many companies operating close to the Italian coast, it has been under continuous discussion by the Italian Oil and Gas trade association and the relevant ministries.

Our other offshore Assigned Permit at D503 BR-CS (Dora gas discovery) lies outside this zone and is progressing to full permit status.  In the near term we will now focus our offshore efforts on Dora.

Neither of the withdrawn Assigned Permits was scheduled for drilling before 2013/14 and we expect to replace them with permits of greater value/potential in due course."

For further information please contact:

Sound Oil Gerry Orbell, Chairman and Chief Executive	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]

 

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