Sound Oil Confirms Gas Discovery in Italy’s Po Valley

Italy-focused Sound Oil announced a gas discovery at Nervesa in Po Valley, reads a note released last week.

“The company has now completed logging operations and is pleased to confirm the identification of 476 metres (true vertical depth) of gross pay and 239 metres (true vertical depth) of gross reservoir with 46 metres (true vertical depth) of net gas pay in 13 separate zones,” reads the note.

The UK-based company said it is now working on the procedures to obtain the certification by the Italian Ministry of Economic Development.

“Following completion of testing, it is the company’s intention to apply for a Production Concession – with a view to achieving first gas sales in 2015,” wrote Sound Oil.

The company will release an announcement confirming the estimated quantity of commercial gas after a full revision of the well test results.

“In October 2012 we set a strategy of significant growth through the drilling of four material wells in Italy within twenty-four months… Whilst a comprehensive technical review is now required to confirm the size of the discovery, it appears sufficiently large to deliver importan cash flows and provide funding alternatives for the 2014 drill programme,” commented Chief Executive Officer James Parsons.

The Mediterranean focused upstream oil and gas company is speeding up its growth strategy, with a parallel change at the helm of the company. Sound Oil hired City broker Stuart Joyner as the group’s new Chief Financial Officer (CFO). According to a note released last week, Joyner joined from Investec, where he had been Head of Oil & Gas from 2010 after a career in investment banking.