28 February 2013
Sound Oil plc
("Sound Oil" or "the Company")
Sound Oil, the Italian focused upstream oil and gas company, is pleased to announce the signature of an asset swap agreement with Compagnia Generale Idrocarburi SpA ("CGI").
Prior to the transaction CGI and Sound Oil each held a 50% equity position in four assets: two awarded licences (Villa Gigli and Colle Ginestre) and two outstanding applications (Posta del Giudice and Il Convento).
The terms of this transaction are that Sound Oil increases its equity position to 100% in Posta del Giudice and Villa Gigli in exchange for eliminating any equity interest in Il Convento and Colle Ginestre. No cash payment is involved in the transaction.
Similar to other oil/gas asset swaps in Italy, completion of the agreement is subject to approval by the Ministry of Economic Development.
James Parsons, Sound Oil's Chief Executive Officer, commented:
"This transaction is part of our portfolio rationalisation strategy, eliminating 50% positions in two non core assets in exchange for a 100% position in one core asset (Posta del Giudice) and a 100% position in one non core asset (which will facilitate its future sale)."
For further information please contact:
James Parsons, Chief Executive Officer
Smith & Williamson - Nominated Adviser
Tel: 44 (0)20 7131 4000
Peel Hunt - Broker
Tel: 44 (0)20 7418 8900