8 August 2014
Sound Oil plc
("Sound Oil" or the "Company")
Laura and Santa Maria Goretti ("SMG") Rig
Sound Oil, the Mediterranean focused upstream oil and gas company, is pleased to announce that it has today signed a Letter of Intent with Drillmec Spa for the exclusive use of an AHEAD 375 Drilling Rig in Italy for both the SMG and Laura wells in 2015.
James Parsons, Sound Oil's Chief Executive Officer, commented:
"Laura and SMG are both existing gas discoveries which the Company plans to re-drill in 2015, with a combined NPV10 in excess of Euro 100 million.
The selection of this highly automated, electrically powered, hydraulic rig, with its minimal noise output and zero emissions, reflects Sound Oil's continued commitment to safety and the environment."
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%; 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.