4 December 2012
Sound Oil plc
("Sound Oil" or "the Company")
Sound Oil, the Italian focused upstream oil and gas company, is pleased to provide the following update on its operations:
Rapagnano Field (Marche, Italy, 100%, Sound Oil Operated)
Following the concession award announced last week, the Company expects to gain access to the site on 6th December with a view to commencing site operations in the week beginning 10th December. The re-entry and testing process will last approximately eight days and then, depending on water levels, a water reduction program including cement squeeze and re-perforation, may be performed which would require an additional 3 days. Hence it is expected that by 19th December, the re-entry of the Rapagnano well with coiled tubing will be complete and a test will have been performed to confirm well deliverability. Once a stable gas flow rate has been proved, surface operations will then continue with re-commissioning work and construction of a short export pipeline. The Company is targeting first gas in mid January.
Nervesa Appraisal Well (Veneto, Italy, 100%, Sound Oil Operated)
As previously announced, the Environment Impact Assessment was approved by the Treviso Province authorities on 8th November.
The drilling rig secured for the Nervesa appraisal well was successfully inspected by the Italian Ministry of Economic Development ("UNMIG") on 23-25 November. A rig contract with LP Drilling, consistent with the Letter of Intent signed in October, will be signed shortly.
The UNMIG approval process continues with the Company estimating that final approval for the drilling operation will be received in early January. Well spud is therefore expected at the end of January, which will be some three weeks after receipt of the final approval.
James Parsons, Sound Oil's Chief Executive Officer, commented:
"The Company is making good progress and is on the brink of achieving first gas and achieving spud of the most significant well in the Company's history."
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
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.