Sound Oil receives approval for Nervesa appraisal well

Sound Oil shares soared above 12 per cent Tuesday after the Italian-focused oil and gas company announced it was given the green light for the Nervesa appraisal well.

Sound Oil shares soared above 12 per cent Tuesday after the Italian-focused oil and gas company announced it was given the green light for the Nervesa appraisal well.

The group said it successfully concluded the 'Conferenza Servizi' process - the last step in the Ministry of Economics Development approval process.

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The Italian government body worked with the Veneto region, Treviso province, local council and various local governmental bodies to reach an agreement to permit the drilling of the well.

The company expects to receive the written 'Autorizzazione' approval before the end of the month.

Meanwhile, Sound Oil confirmed preparation of the Nervesa well site has commenced.

Nevesa is a 21bn standard cubic feet gas discovery founded by Eni oil and gas company in 1985.

James Parsons, Sound Oil's Chief Executive Officer, said it has an independent assessed base case value of $60m and is a flagship project for the company.

"I am pleased to report that preparatory operations on site have commenced which will accelerate spud of the well once the 'Autorizzazione' is issued," he said.

"We still expect to receive the written' Autorizzazione' during January."




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