Sound Oil Awaits Italy's Approval for Second Appraisal Well in Nervesa

Sound Oil readies for a second appraisal well in the Southern limb of the Nervesa discovery in Italy. Awaiting a final government approval, the company has signed a land lease contract.

"Preparations for the second appraisal well on the 24 Bscf Nervesa gas discovery continue. The discovery has an estimated NPV10 of circa US$66 million and is expected to provide material cash flows to the company from 2015," James Parsons, Sound Oil's Chief Executive Officer, commented in a note released on Tuesday. 

The company confirms its plan to spud the second well during the first half of 2014. At the same time, it is looking for a partner to lay off some of the costs. 

Sound Oil has an expanding portfolio in Italy. Rapagnano is the only producing licence, which beat expectations in 2013 with a total of 2.2mln cubic metres of gas.