7th Aug 2014 09:24
LONDON (Alliance News) - Sound Oil PLC Thursday said it has agreed terms on the acquisition of a 59,140 square metre plot of industrial land in Italy's Lombardy region which will host the drill site for the initial Badile exploration well and other production wells needed for the discovery.
Sound Oil, the European and Mediterranean-focused upstream oil and gas company, will pay EUR1.8 million to buy the land and expects to complete the transaction in September.
The firm has ordered a specially-designed flanged wellhead from Breda Energia S.p.A. for EUR380,000 for the exploration well, which it expects to be delivered in January 2015. The rest of the long lead items for the well are to be bought under a framework deal with Tenaris Dalmine, which Sound Oil said it close to finalisation.
"Badile remains the largest and most strategic asset in Sound Oil's portfolio," said Sound Oil Chief Executive James Parsons. "We expect to commence drilling of this potentially game changing well within the next six months."
Sound Oil shares were up 2.2% to 12.9 pence on Thursday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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