Sound Oil achieves first gas at Casa Tiberi
Sound Oil reached a new milestone, achieving first gas at the Casa Tiberi field. Initial gas production rates stood at 9,600 cubic metres per day (0.34mln cubic feet), the Company said in a media release.
The gas is being delivered to a local gas distributor under a gas sales agreement, priced at the spot rate. An annual contract will be negotiated in September.
Separately, Sound confirmed that it has now received all of the £14mln institution investments, with the remaining £4mln worth of loan notes to a wholly owned subsidiary of Continental Investment Partners.
Sound Oil orders long lead items for the second well on the flagship Nervesa discovery. A completion wellhead has already been delivered and is ready, while the other required long lead items are due during September, the company said in a press release.
"Preparations for the second appraisal well on the 24 Bscf Nervesa gas discovery continue," said chief executive James Parsons.
"The arrival of the wellhead and the procurement of the long lead items positions us, from September 2014, to commence operations on site immediately once the permission to drill is granted," he said.
The company also said it expects a farm-out deal for Nervesa to be signed shortly.
Sound Oil is a listed, Mediterranean focused, upstream company with a high upside onshore Italian gas portfolio. An experienced, ambitious and action orientated management with strong italian relationships underpin these assets.Sound Oil has two producing assets, is fully funded and is focused on turning its current high upside portfolio into shareholder value. Its programme for the next year includes starting production at the Nervesa gas discovery, drilling the Badile prospect and drilling the Laura and SMG gas discoveries. Sound Oil aims to broaden the portfolio towards a Mediterranean mid cap player within a couple of years.