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D. R74. AP (Laura Discovery)

License Details:

Area 63.1 km2
Status Appraisal of Existing Discoveries
Effective Date 09.06.2014
Term Six years, expiry on 09.06.2020
Opportunity Laura discovery
Recoverable Resources Up to 25.6 Bcf; Most likely case 17.1 Bcf
Value NPV Up to €64M; Most likely case €31M1
  1. NPV10 based on competent persons report (CPR) by CGG Robertson dated 2015, assumes gas price of €0.23 to €0.31m3

Interests

Sound Energy 100%

Status

Sound Energy applied for the D.R74.AP permit in 2007. In August 2011 the Ministry of Economic Development in Italy withdrew Sound Energy’s application. This decision was made in compliance with a June 2010 environmental decree preventing oil and gas exploration and appraisal activity within 5 nautical miles of the Italian coast. In 2012 this environmental decree was repealed and on 14th November 2012 it was announced that the Ministry had re-opened Sound’s application for the permit.

In June 2014 Sound Energy was formally awarded the D.R74.AP Permit. Following successful analysis of the existing seismic and well data, Sound Energy planned to appraise and develop the Laura discovery. Sound planned to reach the reservoir from an onshore location using extended reach drilling technology and without any further offshore operational activity. In May 2015 Sound Energy submitted an Environmental Impact Assessment for the first exploration well in the block. Anticipating approval, Sound Energy began well planning for a 2016 exploration well. In December 2015 a new Budget law was passed in Italy which prevents any exploitation activity within 12 nautical miles of the coast. The well application is therefore ongoing, awaiting the outcome of challenges to this law.

Permit Area History

D.R74.AP is located in the Ionian Sea Zone D within the Sibari Basin in offshore Calabria. The average water depth is 200m.

The permit area was formerly held by Agip (as permit D.R50.AG) between 1976 and 1984. In 1980 commercial gas was discovered (11.2 MMscf/d) in two sand intervals in the Laura-1 discovery well. Another gas discovery, Lina-1, located in the south of the permit area was made in 1983. In 1984 the permit was converted to the exploitation concession D.C5.AG. A total of 1340 line km of 2D seismic were acquired between 1976 and 1991. None of the accumulations were developed and the concession was relinquished in 2005.

Sound Energy has undertaken significant work on this block. The most likely case recoverable resources for the Laura discovery have been estimated to be 17.1 Bcf*.

* indicates that the figures are supported by a corresponding Competent Person’s Report.