2 September 2014
Sound Oil plc
("Sound Oil" or the "Company")
Nervesa EIA Approval
Sound Oil, the Mediterranean focused upstream oil and gas company, is pleased to announce that the Treviso Province authorities have approved the Environmental Impact Assessment ("EIA") for the second appraisal well of the Nervesa gas discovery, which will target its Southern limb.
It is expected that EIA final approval from the Veneto Region and the drilling authorization from the Italian Ministry of Economic Development will follow with a view to commencing operations on site in the fourth quarter.
James Parsons, Sound Oil's Chief Executive Officer commented:
"This is an important step for our business. Nervesa remains a flagship project for Sound Oil with an estimated NPV10 of circa US$66 million (100%). I am also very encouraged by the streamlining of the Italian oil and gas permitting process, announced by the Prime Minister on Friday, which we expect to result in faster approval timelines going forward."
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.