For immediate release
9 March 2011
Sound Oil PLC
("Sound Oil" or "the Company")
Award of New Exploration Licence in Italy
Sound Oil plc(AIM: SOU), the upstream oil and gas company with assets in Indonesia and Italy, is pleased to announce that it has been awarded a new exploration licence in Italy, bringing the total number of its active permits in the country to 8. In addition, the Company holds 1 concession, 7 preliminary awards and one exclusive application. Of this total Sound operates 14 of the projects.
The new award was announced by the Ministry for Economic Development in Rome and made jointly to Sound's subsidiary Apennine Energy Srl (50%) and its partner Compania Generali Idrocarburi (50%, operator). The permit is awarded for a five year period with an effective start date of 16 December 2010. There is no immediate capital expenditure planned on the licence.
The Colle Ginestre licence is located in Campobasso (Molise) and Chieti (Abruzzo) on the Adriatic coast of central Italy. The new permit lies in the Southern Apennines fairway for shallower gas and deeper oil and adjacent to the Cupello-San Salvo field which has produced over 330 Bscf from the Pliocene play. A number of wells have been drilled on the permit previously, including Colle Turchese-1dir (by ENI in 1988) which encountered gas shows on the flank of a structure characterised by an encouraging flat spot on seismic data, which may indicate a gas accumulation.
Separately, the Company has noted the recent rise in its share price and knows of no particular reason for this. The Company is on track with its planned work programme in Italy announced in December 2010 and to this end the Company has selected a preferred bidder from the tender process and is currently negotiating a rig contract for a work-over well on the Company's Marciano concession in Italy. Application will be made to the ministry for the work permit and a further announcement will be made in due course.
Gerry Orbell, Chairman and Chief Executive of Sound Oil plc, commented:
"Sound Oil is very pleased to have been awarded the new licence onshore Italy, one of our core areas in which we have built an extensive portfolio, experience and knowledge. The new licence contains some attractive new prospects and leads in close proximity to existing discoveries in a very prolific gas province.
For further information please contact:
Gerald Orbell, Chief Executive
Tony Heath, Finance Director
Tel: 44 (0)1372 371010
Tel: 44 (0)1372 371010
Tel: 44 (0)207 466 5000
Tel: 44 (0)207 600 1658