2nd Apr 2015 07:23
LONDON (Alliance News) - Sound Oil PLC Thursday said it has received an updated competent person report which has validated the company's Italian portfolio.
The report was conducted by CGG Services (UK) Ltd and focused on Sound's portfolio, excluding the Badile, Zibido and Casa Tiberi assets. All of the company's assets are in Italy. The report includes a full technical and economic review for Rapagnano, Carita, Laura and D503-BR-CS, with the other assets being subject to only an economic review, it said.
The report has broadened the company;s core Italian gas portfolio to include the D503-BR-CS licence, which includes the Dora discovery and the Dalla prospect.
The report also confirmed the scale of the Italian portfolio, validating the 4.0 billion standard cubic feet of proved and probable gas reserves, of which 1.6 billion standard cubic feet is already proven and also confirmed there is an additional 5.7 billion standard cubic feet that could be added to its reserves in the future.
James Parsons, chief executive officer of Sound said the report "validates the scale of our Italian portfolio, blending cost covering production and low risk existing discoveries with significant blue sky exploration potential."
"It also provides the first opportunity to reveal the Dora discovery and the Dalla prospect, which are new, material, yet low risk offshore gas assets very close to producing platforms and other existing infrastructure; and prepares the way for the next stage of development of our Italian business including various asset funding and partnership arrangements," said Parsons.
A competent persons report was carried out on the company;s largest and most strategic asset, Badile, in October 2013, which confirmed a gross best case scenario of prospective resources estimated at 178 billion standard cubic feet equivalent.
Sound shares were down 2.2% to 14.80 pence per share on Thursday morning.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Sound Energy