Sound Oil Announce 2014 Interim Results

 

Sound Oil, the European / Mediterranean focused upstream oil and gas company, announced its unaudited interim results for the six months ended 30 June 2014.
 
Highlights
 
*     Introduction of cornerstone institutional investor following the year-end at a significant premium to market
 
*     Continued preparation for the drilling of the world class Badile prospect early 2015 with a competitive farm out process underway
 
*     Italian cost base to be covered by production from Rapagnano and Casa Tiberi
 
*     Santa Maria Goretti discovery confirmed NPV of €52.4 million (82% increase)
 
*     Nervesa second well, targeting the Southern limb of the discovery, approaching
 
 
Simon Davies, Chairman  of Sound Oil  stated, "The first half of 2014, which included a £14 million institutional investment, has been a critical inflection point for the Company. This successful funding transaction which was secured at a significant premium to the prevailing share price, now positions the Company with the funds required to fulfil its immediate drilling priorities.

Following this investment, the team and I are pleased to welcome our new cornerstone investor, Continental Investment Partners S.A. ("Continental"), to our register and Marco Fumagalli, Continental's Managing Director, to our Board as a Non-Executive Director.
 
"Operationally the team continues to develop our growing portfolio of producing assets. Following first gas from Casa Tiberi, as announced on 29 July 2014, gas sales now cover our Italian cost base whilst also demonstrating our capacity to bring assets from exploration through development and into production, he added. "During the first quarter the Company reported that production at our Rapagnano onshore gas field was ahead of budget for 2013 and that there had been a 31% increase in the Rapagnano reserve base. The Company expects Nervesa to become the Company's next addition to the producing portfolio - with first gas at this material onshore gas discovery expected during 2015."
 
Davies highlighted the Company's progress in relation to their portfolio of low risk existing discoveries which are also gaining momentum - with the recent award of the permit containing the 30 Bscf Laura discovery and a new Competent Person's Report on the onshore Santa Maria Goretti permit confirming a 32.8 Bscf opportunity.  These two assets have a combined NPV10 exceeding Euro 100 million.
 
With regard Badile Davies informed that Sound Oil continues to prioritise human and capital resources towards the successful drilling of this game changing asset. In this context, He noted the announcement and subsequent decree by the Italian Prime Minister, in which he proposed a streamlining of the Italian oil and gas permitting process which we expect to result in faster approval timelines going forward.