4th Sep 2013 08:17
LONDON (Alliance News) - Sound Oil PLC Wednesday said it has received positive results from its onshore test well Nervesa in Northern Italy.
The exploratory oil-and-gas company with operations in Europe and the Mediterranean said the well test achieved a total gas flow rate of 2.7 million standard cubic feet per day from a range of sandstone intervals in the Miocene San Dona Formation.
The company also said it has increased its estimates for recoverable gas resources at the site to 24 billion cubic feet of gas from 21 billion cubic feet following the test.
The company said it is applying for a production license for Nervesa with a view to achieving first gas in 2015, drilling its second well at Nervesa and securing funding for its development.
Sound Oil said it is now moving ahead to its second phase of its strategy and is preparing to drill its Laura and Badile sites in Italy.
"The company is now working on securing an attractive Reserve Based Lending facility and exploring the possibility of a partial sale of the (Nervesa) discovery. In the meantime the bridge loan provides short term flexibility," Chief Executive James Parsons said in a statement.
Sound oil shares were down 0.75 pence, or 5.9% to 12.00 pence in early trading Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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