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and gas company with assets in Italy and Indonesia, announces that the Ministry of Economic Development in Italy has withdrawn Sound Oil's Assigned Permits d148 DR-CS and d150 DR-CS from the application process to full permit status.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Neither of the withdrawn Assigned Permits was scheduled for drilling before 2013/14 and we expect to replace them with permits of greater value/potential in due course."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:
Gerry Orbell, Chairman and Chief Executive
Tel: 44 (0)1372 365745
Smith & Williamson - Nominated Adviser
Tel: 44 (0)20 7131 4000
Investec - Broker
Tel: 44 (0)20 7597 4000
Tel: 44 (0)20 7466 5000