29th Jul 2014 10:20
LONDON (Alliance News) - Sound Oil PLC Tuesday said that first gas has been delivered from its Casa Tiberi field in the Marche region of Italy, the company's second Italian onshore gas field.
The Mediterranean-focused oil and gas company said the initial production rate was 340,000 standard cubic feet per day from the Lower Pliocene Cellino formation at the site, and the gas was provided to a local gas distributor on July 28.
The company said that under a gas sales agreement with Prometeo Srl, gas will be priced at the spot rate and an annual contract will be negotiated in September.
"We are pleased to have achieved the strategic milestone of first gas from our second Italian onshore gas field. Our low risk producing portfolio now funds our Italian cost base," Chief Executive James Parsons said in a statement.
"We will continue our strategy of monetizing existing onshore gas discoveries in Italy, including achieving first gas at the 24 billion standard cubic feet Nervesa discovery during the next twelve months," Parsons added.
The company said in a separate announcement Tuesday that it has completed the final stage of a GBP14 million institutional investment programme announced in April, with Continental Investment Partners SA injecting the cash into Sound Oil at an average price of approximately 9 pence per share, in order to help Sound Oil develop its Nervesa and Badile operations.
Sound Oil said it has now issued the remaining GBP5.5 million of loan notes to a subsidiary of Continental Investment partners together with the issuance of 52.9 million warrants to subscribe for more shares at a price of 10.4 pence per share.
Sound Oil shares were down 1.4% to 12.32 pence on Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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