Sound Oil Gets Govt Nod for Rapagnano Concession

- Sound Oil Gets Govt Nod for Rapagnano Concession

Wednesday, August 24, 2011
Sound Oil plc

Sound Oil announced that the Italian Ministry for Economic Development has awarded the Rapagnano Concession, located in the Marche Region of central Italy, to the Company's wholly-owned subsidiary Apennine Energy srl. The award is subject to the acceptance of any environmental impact assessment that may be required by the Marche regional authorities. In view of the previous production history at the site which is within an industrial area, the Company anticipates that this acceptance will be granted.

The Rapagnano gas field on the concession had previously produced 4.1 Bscf of gas into the national network until it was shut-in in 2001. A recent reservoir engineering study by consultants Senergy (GB) Ltd has estimated that an additional 2.45 Bscf of gas is potentially recoverable from the field. Apennine's objective will be to put the field back on stream at an approximate estimated cost of US $0.5 million with expected first revenue in 2Q of 2012.

Commenting on the news, Gerry Orbell, Sound Oil's Chairman and Chief Executive, said, "This is very encouraging news. The Italian Ministry has awarded the Rapagnano field to us at no cost with the expectation that we can put it back on stream quickly. We intend to produce to the national gas network through the connection which is on site and provide an early cash flow with minimal investment."

Oil & Gas Post

Promote Your Page Too
LINK

Engineering Work Underway at Sound Oil's Montemarciano

- Engineering Work Underway at Sound Oil's Montemarciano

Monday, August 22, 2011
Sound Oil plc

Sound Oil announced that its subsidiary Apennine commenced civil engineering works on August 18 at the drilling site for the farm-in exploration well, Casa Tiberi-1, at the Montemarciano permit (75% Sound Oil interest). Drilling operations are expected to commence in the next 90 days and the budgeted cost of the well to the Company is US $1.5 million.

Commenting on the above, Gerry Orbell, Sound Oil's Chairman and Chief Executive said, "Casa Tiberi-1 is the first well that we shall be drilling as operator. The competent person estimated the risk of finding hydrocarbons to be 35% which is relatively low for an exploration well. If successful, the most likely worth to Sound is approximately US $12 million based on the present evidence but I am hoping for the upside which could be worth US $37 million."

Oil & Gas Post

Promote Your Page Too

Sound Oil Awaits Autumn Drilling Program in Italy

- Sound Oil Awaits Autumn Drilling Program in Italy

Monday, July 25, 2011
Sound Oil plc

Sound Oil announced the following update on current operations.

Italy

Marciano-1 ST Well (Sound Oil 100%)

The Company has received a reservoir engineering report undertaken by AGR which has analyzed pressure data from the test of the upper zone at Marciano (1283-1288m) in respect of reserve estimates and reservoir parameters. Unfortunately the initial gas in place in the tested reservoir interval is estimated to be insufficient for commercial production. Therefore present operations at the site will cease pending a future review of the permit.

Montemarciano Permit (Sound Oil farm-in 75%)

An application to commence the site construction for the Casa Tiberi-1 exploration well was submitted to the Ministry of Economic Development on July 20. Civil works are expected to start before August 24 this year with the intention to spud the well no later than 90 days from the start of site preparation.

Badile Permit (Sound Oil 100%)

The interpretation of the 3D seismic data is underway and preliminary results are expected by the end of July.

Indonesia

Citarum PSC (Sound Oil 20%)

The Operator of the PSC, Pan Orient Energy, reports that well site construction has started at the exploration location at Jatayu and is expected to be completed in 2-3 weeks. Construction will then begin immediately on the second exploration well site at Cataka. These sites are for the next two wells on this permit later in the year. The third well location is currently being reviewed by the Operator and Authorities.

Commenting on this update Gerry Orbell, Sound Oil's Chairman and Chief Executive Officer said, "The news from Marciano is clearly disappointing, especially after such an encouraging initial flow rate. The Marciano project was, however, a small part of the value of our portfolio. We will now focus our efforts on the four well program we expect to be starting in the Autumn and also preparing for pending applications in Italy which we expect to be awarded shortly."

Oil & Gas Post

Promote Your Page Too
LINK

Sound Oil Passes Test at Marciano Well

- Sound Oil Passes Test at Marciano Well

Tuesday, June 28, 2011
Sound Oil plc

Sound Oil announced the following news concerning its Italian assets.

Testing operations at the Marciano-1ST well have produced gas at rates up to 98,000 scmd (~ 3.5 MMscfd) from one of the two perforated zones before the well had to be restrained due to site flare restrictions. The test will continue to determine a stabilized flow rate and information from the test flow will be used to determine the scope for early commercialization of the well.

Sound Oil has a 100% operated interest in the Marciano project located on the Fonte San Damiano Concession.

Commenting on these announcements Gerry Orbell, Sound Oil's Chairman and Chief Executive Officer, said, "This is a very encouraging result from Marciano where the upper sand has tested gas at very good rates. The next step is to re-certify the production equipment on site and then to generate revenue. Altogether today is a very good day for the Company."

Oil & Gas Post

Promote Your Page Too

Sound Oil's Marciano Ops to Recommence Soon

- Sound Oil's Marciano Ops to Recommence Soon

Friday, June 24, 2011
Sound Oil plc

Sound Oil announced that operations on Marciano-1ST well is expected to recommence on June 25. Contractors and necessary equipment are currently being mobilized to the well site to undertake testing operations. The test program is expected to take a minimum of 4 days.

Oil & Gas Post

Promote Your Page Too

Sound Oil Farms-In to Montemarciano Permit

- Sound Oil Farms-In to Montemarciano Permit

Tuesday, June 07, 2011
Sound Oil plc

Sound Oil announced that, through its majority held subsidiary Apennine, it has concluded a Farm-In Agreement with Servizi & Assistenza Ricerche Petrolifere spa (SARP) to acquire an interest in the Montemarciano Permit located in Ancona Province, central Italy. The permit is currently operated by SARP with 100% working interest.

Under the terms of the Agreement, Apennine will pay SARP €215,000 ($290,000) as a contribution to past expenditures and fund the 100% cost of the Casa Tiberi-1 exploration well up to €800,000 ($1,080,000) to earn a 75% working interest in the permit and the Operatorship.

The well will be drilled to 700m to evaluate potential gas-bearing sands in the Lower Pliocene Cellino Formation. Fugro-Robertson Limited (FRL) has prepared a Competent Person's Report on the prospect and identify Base Case (P50) prospective resources of 5.7 Bscf, with High Case (P10) prospective resources of 14.9 Bscf. The geological chance of success is calculated at 35%. On a success case basis the potential value (NPV10) of the project is assessed to be $11.6 million for the Base Case and $37.1 million for the High Case.

All necessary approvals to drill the well from the relevant authorities have already been received by SARP. Work on the construction of the Casa Tiberi wellsite will commence as soon as land access is finalized. It is anticipated that the well will be drilled in 3Q-4Q this year.

Commenting on the above, Gerry Orbell, Chairman of Sound Oil said, "This deal gives us an early opportunity to drill a very low cost well to explore for gas resources which if successful in the P50 case should provide near term cash flow and in the high case will have a considerable impact on our assets base. The well will be drilled as an addition to the existing operations program, using funds previously raised by the Company earlier in 2011."

Oil & Gas Post

Promote Your Page Too