Italy: Portfolio Update

RNS Number : 3393Y

Sound Oil PLC

08 September 2015

 

8 September 2015

Sound Oil plc

("Sound Oil" or the "Company")

Italy: Portfolio Update

Sound Oil, the Mediterranean focused upstream gas company is pleased to update investors on its progress towards first commercial production at the onshore Nervesa gas field in Italy and the Badile Permit.

Nervesa Gas Discovery

Consistent with previous guidance, commercial production from the onshore Nervesa gas discovery is expected by the end of 2015.  Highlights of recent progress include:

-     Production Concession from the Italian Ministry of Economic Development awarded (as announced on 16 July 2015)

-     Signature of gas sales agreement with Shell Energy Italia (as announced on 6 August 2015)

-     Production skid construction on track for installation end October 2015

-     All other equipment and materials required ahead of production are now on site

A webcam has also now been installed on site and is expected to be live during September

Badile Prospect

Following receipt of the approval of the Environmental Impact Assessment ("EIA") for the Badile exploration well on 17 March 2015, the Company has been advised by UNMIG (the Italian Ministry of Economic Development) that the Badile permit will be extended until the earlier of 31 December 2016 or 12 months from the date of the award of the final authorization to drill the forthcoming well (the Badile permit previously had an expiry date of 23 March 2016). 

The Company expects to receive final authorization to drill the well during the course of 2015 and continues with its efforts to identify and negotiate a farm in partner.

For further information please contact:

Sound Oil James Parsons, Chief Executive Officer	[e-mail]
Vigo Communications - PR Adviser Patrick d'Ancona Chris McMahon Alexandra Roper	Tel: [phone]
Smith & Williamson - Nominated Adviser Azhic Basirov David Jones Ben Jeynes	Tel: [phone]
Cantor Fitzgerald Europe - Broker Sarah Wharry David Porter	Tel: [phone]

 

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