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.

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