Sound Oil revises drilling plans in Italy

Sound Oil announced plans Wednesday to revise its drilling operations in Italy in an effort to increase return to shareholders.

Sound Oil announced plans Wednesday to revise its drilling operations in Italy in an effort to increase return to shareholders.

The company said reshaping its drilling it will increase "upside exposure" for investors, as well as balancing risk and reward.

A second well will be drilled at the Nervesa discovery at the end of this year, subject to the success of an appraisal. As a result the proposed drilling on the Strombone appraisal project will be halted.

However, it will free up $9.0m and allow the company to ramp up production and cash flows from Nervesa.

Sound oil also intends to drill two material exploration prospects, Badile and Zibido, over the next two years which have potential to significantly accelerate growth.

The Laura appraisal project is on schedule for next year and the group expects it to provide early material cash flows after it is granted permits in the first half of this year.

"This strategic revision to the drill programme is a positive step and focuses our financial and human resources on game-changing drills whilst also capturing rig cost synergies," said Chief Executive James Parsons.

Shares fell 3.51% to 6.88p at 10:10 Wednesday.

RD

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

China owns a lot more gold than it’s letting on – and here’s why
Gold

China owns a lot more gold than it’s letting on – and here’s why

In a world awash with money-printing, a currency backed by gold would have great credibility. And China – with designs on the yuan becoming the world’…
21 Apr 2021
“Joke” cryptocurrency dogecoin goes to the moon. What’s going on?
Bitcoin

“Joke” cryptocurrency dogecoin goes to the moon. What’s going on?

Dogecoin – a cryptocurrency created as a joke – has risen by more than 9,000% this year alone. Saloni Sardana looks at how something that began as an …
19 Apr 2021
House prices in the UK are still surging – here’s why it’ll probably continue
Property

House prices in the UK are still surging – here’s why it’ll probably continue

The latest UK house price data shows no letup in the country’s booming property market, with the biggest yearly rise since 2014. And there’s no end in…
22 Apr 2021