12 September 2012
Sound Oil plc
("Sound Oil" or "the Company")
Operations Update - Indonesia
Sound Oil, the upstream oil and gas company with assets in Italy and Indonesia, is pleased to announce the following update on its operations in Indonesia.
Bangkanai PSC (Sound 5%):
Operations to drill four development wells on the Kerendan gas field in Kalimantan are progressing well. The first well (K-4) has completed drilling and setting of casing in the uphole section, consistent with the schedule. The rig has now skidded to the second location (K-6) to drill the corresponding uphole section. Three of the wells will be batch drilled and the fourth will be drilled as a single operation. Each well will be drilled as a deviated hole from the Sungai Lahei well pad located immediately west of the field.
Sound Oil's share of proved and probable reserves (proved undeveloped) in the Kerendan field are 6.685 Bscf and 0.070 MMbo (condensate) (Fugro Robertson CPR, October 2011); equivalent to 1.184 Mmboe. The estimated NPV10 of the field to Sound Oil is some US$ 6.4 million.
For further information please contact:
Gerry Orbell, Chairman & Chief Executive
Michael Cope, Chief Operating Officer
Tel: 44 (0)1372 365745
Smith & Williamson - Nominated Adviser
Tel: 44 (0)20 7131 4000
Westhouse Securities - Broker
Tel: 44 (0)20 7601 6100
Buchanan - Financial PR
Tel: 44 (0)20 7466 5000
1. The information contained in this announcement has been reviewed by Sound Oil's Chief Operating Officer, Dr M. J. Cope BSc PhD CGeol FGS, a qualified petroleum geologist.
2. The basis of the reserve and resource estimates referred to above is consistent with SPE (The Society of Petroleum Engineers) guidelines and are taken from in a Competent Person's Report prepared for Sound Oil by Fugro Robertson Limited in October 2011. "MMbo" means million barrels of oil; "MMboe" means millions of barrels of oil equivalent; "Bscf" means billions of standard cubic feet of gas; NPV10 means the net present value of estimated recoverable volumes discounted at 10%.