RNS Number : 6239Y
Sound Oil PLC
28 January 2014

28 January 2014


Sound Oil plc

("Sound Oil" or the "Company")


Land Lease Agreement


Sound Oil, the European / Mediterranean focused upstream oil and gas company, announces that it has signed a land lease contract for the forthcoming well addressing the Nervesa discovery on the Carita permit in Northern Italy. 


As previously announced, following the first Nervesa appraisal well in summer 2013, the Company plans to drill a second well to appraise the Southern limb of the Nervesa discovery once final governmental approval has been obtained. In preparation for well spudding during the first half of 2014, the Company has secured use of a 18,300m2 plot of land for a period of two years.  The location of this plot has enabled the Company to optimise the well trajectory, including minimising the well deviation.


James Parsons, Sound Oil's Chief Executive Officer, commented:


"Preparations for the second appraisal well on the 24 Bscf Nervesa gas discovery continue. The discovery has an estimated NPV10 of circa US$66 million and is expected to provide material cash flows to the Company from 2015."



For further information please contact:


Sound Oil

James Parsons, Chief Executive Officer

Stuart Joyner, Chief Financial Officer           





Smith & Williamson - Nominated Adviser

Azhic Basirov

David Jones


Tel: 44 (0)20 7131 4000

Peel Hunt - Broker

Richard Crichton

Charles Batten


Tel: 44 (0)20 7418 8900


The information contained in this announcement has been reviewed by Sound Oil's Italian Managing Director, Luca Madeddu, a qualified petroleum geologist.


The gas resource volumes and values mentioned above are based on P50 contingent resource estimates.


Bscf means billion standard cubic feet of gas; NPV10 refers to a net present value at a discount rate of 10%.



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