Sound Oil nets Colle Ginestre exploration license onshore Italy

Source: Sound Oil

Sound Oil plc (AIM: SOU) has been awarded a new exploration license onshore Italy, which holds a number of prospects and is located nearby a prolific gas province. 

The Colle Ginestre license is located in Campobasso (Molise) and Chieti (Abruzzo) on the Adriatic coast of central Italy. The new permit lies in the Southern Apennines fairway for shallower gas and deeper oil and adjacent to the Cupello-San Salvo field which has produced over 330 Bscf from the Pliocene play. 

“The new license contains some attractive new prospects and leads in close proximity to existing discoveries in a very prolific gas province,” said Gerry Orbell, chairman and chief executive of Sound Oil. 

A number of wells have been drilled on the permit previously, including Colle Turchese-1dir (by ENI in 1988), which encountered gas shows on the flank of a structure characterized by an encouraging flat spot on seismic data, which may indicate a gas accumulation. 

The new award was announced by the Ministry for Economic Development in Rome and made jointly to Sound's subsidiary Apennine Energy Srl (50%) and its partner Compania Generali Idrocarburi (50%, operator). The permit is awarded for a five year period with an effective start date of 16 December 2010. There is no immediate capital expenditure planned on the license. 

In addition, Sound Oil holds one concession, seven preliminary awards and one exclusive application. Of this total Sound operates 14 of the projects. 

Separately, Sound Oil has noted the recent rise in its share price and knows of no particular reason for this. The Company is on track with its planned work programme in Italy announced in December 2010; and to this end the Company has selected a preferred bidder from the tender process and is currently negotiating a rig contract for a work-over well on the Company's Marciano concession in Italy. Application will be made to the ministry for the work permit and a further announcement will be made in due course.

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