28th Jan 2014 09:51
LONDON (Alliance News) - Sound Oil PLC Tuesday said it has signed a land lease contract for the forthcoming well at the Nervesa discovery on the Carita permit in northern Italy.
The oil and gas company, with operations in Europe, said that following the Nervesa well discovery it is to drill a second well to appraise the southern limb of the space once final government approval has been obtained.
The company said that in preparation for a new well going into test production during the first half of 2014, the company has secured the use of a 18,300 square metre plot of land for two years.
The Nervesa discovery has an estimated NPV10 of USD66 million and is expected to provide material cash flows to the company from 2015. NPV10 means net present value at a 10% discount rate.
The news comes weeks after the company announced its 24-month work programme in Italy, in which it said it plans to fund key drilling, including at Nervesa and Badile, through the joint venture partners in order to build a portfolio of producing assets to cover the company's overheads.
Sound Oil shares were trading flat at 4.88 pence in early trading Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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