23rd Sep 2014 07:40
LONDON (Alliance News) - Europe and Mediterranean focused oil and gas company Sound Oil PLC on Tuesday said it has signed non-binding heads of terms on a reserve-based lending facility backing the Nervesa discovery in Italy.
The group said, subject to contract, it has secured a EUR7 million, 24-month loan on the Carita permit, where the Nervesa discovery is based. The funding is to be provided by Greenberry SA, an affiliate of Continental Investment Partners SA.
Under the terms of the deal, Greenberry will receive a 4% royalty on gross revenues from the Nervesa discovery, along with an arrangement fee to be paid in Sound Oil shares.
"This loan will be the second major investment by our cornerstone institutional investor and demonstrates the value of our flagship asset, Nervesa, which will achieve first gas in 2015," said Sound Oil Chief Executive Officer James Parsons.
Sound Oil shares were hovering around the top performers in opening trade on Tuesday on the back of the news, hitting 13.35 pence, but pared back to be up 0.8% to 12.60p in early trade.
By Sam Unsted; [email protected]; @SamUAtAlliance
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