1 August 2014
Sound Oil plc
("Sound Oil" or "the Company")
Nervesa Long Lead Items
Sound Oil, the European / Mediterranean focused upstream oil and gas company, is pleased to update investors on its continued progress with the proposed second well addressing the Southern limb of the Nervesa gas discovery, onshore Italy.
The 5,000psi single completion wellhead has now been delivered to a local warehouse and is ready for installation.
The remaining long lead items have now also been ordered and are scheduled for delivery during September. These additional items include a full set of casing, tubing and the liner hanger.
James Parsons, Sound Oil's Chief Executive Officer, commented:
"Preparations for the second appraisal well on the 24 Bscf Nervesa gas discovery continue. The arrival of the wellhead and the procurement of the long lead items positions us, from September 2014, to commence operations on site immediately once the permission to drill is granted.
The discovery has an estimated NPV10 of circa US$66 million (100%) and is expected to provide material cash flows to the Company from 2015. The previously announced farm in on this asset is expected to be signed shortly."
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
NPV10 refers to a net present value at a discount rate of 10%. 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.