15th Jul 2014 11:01
LONDON (Alliance News) - Sound Oil PLC Tuesday said a report has significantly upgraded the recoverable volumes at its Santa Maria Goretti gas prospect, onshore Italy, adding another low-risk opportunity to the company's portfolio of assets.
The Mediterranean-focused oil and gas company said a full independent competent persons report, carried out by CGG Robertson, has estimated gas initially in place of 66.4 billion standard cubic feet of gas and recoverable best estimate prospective resources of 32.8 billion standard cubic feet.
"This CPR uplifts the Company's previous resource estimate by 82% and confirms the addition of a further low risk, yet hugely material, asset into Sound Oil's Italian onshore gas portfolio," Chief Executive Officer James Parsons said in a statement.
The company said that the report valued the site at EUR52.4 million and estimated a 68% geological chance of successful production from its Thin Beds target area.
The permit contains extending regions from two nearby producing gas fields, owned by ENI and Edison, which have been feeding out gas for thirty years.
Sound Oil said the report supports its plan to drill an exploration well, targeting the Thin Beds reservoir and the deeper Level-1 reservoir, before a possible development well at the site.
"The top hole location has already been identified and an application to drill will be submitted to the permitting authorities shortly, with a view to drilling during 2015," Parsons said in a statement.
Sound Oil shares were up 6.7% to 11.47 pence on Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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