20 November 2012
Sound Oil plc
("Sound Oil" or "the Company")
Sound Oil, the Italian focused upstream oil and gas company is pleased to provide a funding update ahead of forthcoming drilling operations at Rapagnano and Nervesa.
The Company confirms that the third and fourth tranches of the share placement announced on 16 July 2012 have now been settled, generating a total of £2.0 million (at monthly VWAPs of 0.870 pence and 1.141 pence per share).
The Company's current cash balance, following receipt of the fourth tranche payment of US$1.8 million which is due today, will be US$6.2 million, with no debt.
The remaining three tranches of the placement, assuming current share price levels, are expected to raise a further £3.5 million (US$5.5 million). In addition the open offer expected to be made to shareholders in March 2013 following the conclusion of the placement should generate up to a further £1 million (US$ 1.6 million).
The estimated total remaining expenditure across Nervesa and Rapagnano is some US$2.4 million (US$1.8 million on Nervesa and US$0.6 million on Rapagnano). Both operations therefore remain easily funded from the current cash balance.
James Parsons, Sound Oil's Chief Executive Officer commented:
"I am pleased to confirm that Sound Oil expects to enter the second quarter of 2013, post Nervesa drilling, with a very strong cash position.
We are evaluating various alternatives which would enable the Company to drill the Strombone appraisal well, during 2013, without equity dilution."
For further information please contact:
James Parsons, Chief Executive Officer
Smith & Williamson - Nominated Adviser
Tel: 44 (0)20 7131 4000
Westhouse Securities - Broker
Tel: 44 (0)20 7601 6100
Tel: 44 (0)20 7466 5000