Sound Oil reports good progress towards first gas

Sound Oil, an Italian focused upstream oil and gas company, has reported that following a concession award announced last week, it now anticipates gaining access to the Rapagnano Field in Marche, of which it is the operator, on Thursday 6th and beginning site operations in the following week.

By MoneyWeek

published 4 December 2012

in Features

It said the re-entry and testing process will last approximately eight days, after which a water reduction programme may be carried out over a period of three days.

As such, testing is expected to be completed by December 19th, and once a stable gas flow rate has been proved, surface operations will then continue with re-commissioning work and construction of a short export pipeline.

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Sound said it is targeting first gas in mid-January.

Meanwhile, at the Nervesa appraisal well, of which it is also the operator, the drilling rig was successfully inspected by the Italian Ministry of Economic Development, meaning a rig contract with LP Drilling will be signed shortly.

Drilling on the well is expected to begin at the end of January, around three weeks after the anticipated approval of drilling operations at the site.

James Parsons, Sound Oil's Chief Executive Officer, said: "The company is making good progress and is on the brink of achieving first gas and achieving spud of the most significant well in the company's history."

The share price rose 4.88% to 1.07p by 08:33.