29 July 2014
Sound Oil plc
("Sound Oil" or "the Company")
Casa Tiberi First Gas
Sound Oil, the Mediterranean focused upstream oil and gas company, is pleased to announce that first gas was delivered from the onshore Casa Tiberi field, located in the Marche Region of Italy, to the local gas distributor on 28 July 2014. The initial production rate was 9,600 Scmd (0.34 MMscfd) from the Lower Pliocene Cellino formation.
Under the gas sales agreement with Prometeo Srl, gas will be priced at the spot rate and an annual contract will be negotiated in September.
James Parsons, Sound Oil's Chief Executive Officer, commented:
"We are pleased to have achieved the strategic milestone of first gas from our second Italian onshore gas field. Our low risk producing portfolio now funds our Italian cost base.
We will continue our strategy of monetizing existing onshore gas discoveries in Italy, including achieving first gas at the 24 Bscf Nervesa discovery during the next twelve months."
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
Scmd means standard cubic metres of gas per day; MMscfd means million standard cubic feet of gas per day; Mscf means thousand standard cubic feet of gas; Bscf means billion standard cubic feet of gas; NPV10 refers to a net present value at a discount rate of 10%; best estimate and P50 refer to a 50% chance of finding a given volume consistent with SPE (The Society of Petroleum Engineers) guidelines. The information contained in this announcement has been reviewed by Sound Oil's Italian Managing Director, Luca Madeddu Bsc, a qualified petroleum geologist and member of the Society of Petroleum Engineers.