12th Jun 2014 11:39
LONDON (Alliance News) - Sound Oil Thursday said it plans to access the Laura Gas discovery off the Italian coast through drilling from an onshore location to reduce upfront and operating costs, after it received a permit for the block from the Italian Ministry of Economic Development.
Italian oil major Eni SpA originally made the discovery in 1980 and previously it flowed at a stabilised rate of 10 million of standard cubic feet per day, with an independently assessed resource of 30 billion standard cubic feet.
The permit, which is now completely owned by Sound Oil, is located 4 kilometres offshore in the Gulf of Taranto, southern Italy.
Sound Oil plans to reach the reservoir from an onshore location using extended reach drilling technology and without further offshore seismic acquisition.
The well will be subject to an Environmental Impact Assessment.
"Laura is one of five game-changing assets in our Italian drilling programme, has an NPV10 of EUR66 million and is capable of generating significant free cash flows," Chief Executive James Parson said in a statement.
"The drilling of this offshore reservoir from onshore using extended reach drilling technology is an innovative and environmentally friendly approach which will ensure zero impact to the marine environment whilst also reducing development capital and operating expenditure," he added.
Sound Oil shares were quoted up 3.8% at 12.85 pence Thursday.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Sound Energy