Sound Oil to Sell Rapagnano Gas to Steca Energia

Sound Oil has said today that it has signed a Gas Sales Agreement (GSA) with Steca Energia to sell gas produced from the Rapagnano field in the Fermo Province of Italy.

Sound Oil, which expects to commence production from the field very soon, agreed the sale of the expected gas amount of 1.3 billion square cubic feet (bscf) over the course of a 13-year lifetime.

The production will restart a field that produced for over 40 years. The field, which was shut in 2001, has already produced 4 bscf over its lifetime,

The news comes on the same day as Sound Oil announced separately that it had received approval from the Italian Ministry of Economic Development to begin operations at the site.

In a statement on the Sound Oil website, CEO James Parsons said operations were expected to begin soon.

"The company continues on track to achieve the strategic milestone of first gas and first revenue very shortly, having now secured the concession," he said. "Operations on the site will commence within a week."

In the GSA signed today, Steca said that it would pay a guarantee deposit of one month's production to Sound Oil.