13th Nov 2014 11:00
LONDON (Alliance News) - Sound Oil PLC Thursday said it has signed a reserve-based lending facility for the Nervesa discovery, onshore Italy.
The oil and gas company said it has signed a EUR7 million, 24-month bullet loan issued at par with a 5% coupon. The loan has been provided by Greenberry SA, an affiliate of Continental Investment Partners SA, the cornerstone investor in Sound Oil.
It has been secured against the Carita permit, in which the Nervesa discovery is based, and after the award of the first production concession, expected next year, will be without recourse to the company.
"This loan is the second major investment by our cornerstone institutional investor, funding the company and demonstrating the value of our flagship asset, Nervesa. The company is approaching an exciting period of back-to-back drilling, which commences with site operations at Nervesa in December," said Sound Oil Chief Executive Officer James Parsons.
Shares in Sound OIl were up 2.2% to 10.585 pence on Thursday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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