Sound Oil turns down offer for Badile prospect in Italy

Sound Oil said Tuesday it turned down a farm-in agreement for its Badile exploration prospect in northern Italy.

Sound Oil said Tuesday it turned down a farm-in agreement for its Badile exploration prospect in northern Italy.

The company received an offer from an undisclosed Italian oil and gas major but decided to retain its wholly-owned operated position at the prospect, saying: "The offer did not reflect the potential of this major asset."

Badile comprises of 185bn cubic standard feet in gas and 23m barrels of oil onshore in the Po Valley, about 30km southeast from the geologically analogous Villafortuna-Trecate field.

The prospect has an independently assessed success case net present value of $410m gas and $266m oil. The exploration well is forecast to cost about €20m plus contingency.

Chief Executive Officer of Sound Oil, James Parsons, said: "I am pleased to have secured an offer from a credible potential partner, which validates our technical view of the asset.

"We have chosen to retain the upside exposure and also control of project budgets and timelines. We will now prepare for drilling and continued de-risking of the asset whilst remaining open to offers..."

In coming months the company will submit a drilling request and Environmental Impact Assessment to the Italian permitting authorities, targeting a 2014 Badile well.

A technical team will be recruited for the well which will reach a target depth of 5300 metres.

Shares fell 1.72% to 7.12p at 09:29 Tuesday.

RD

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Here’s why you really should own at least some bitcoin
Bitcoin

Here’s why you really should own at least some bitcoin

While bitcoin is having a quiet year – at least in relative terms – its potential to become the default cash system for the internet is undiminished, …
16 Sep 2020
Will a second wave of Covid lead to another stockmarket crash?
Stockmarkets

Will a second wave of Covid lead to another stockmarket crash?

Can we expect to see another lockdown like in March, and what will that mean for your money? John Stepek explains.
18 Sep 2020
James Ferguson: How bad data is driving fear of a second wave of Covid-19
UK Economy

James Ferguson: How bad data is driving fear of a second wave of Covid-19

Merryn and John talk to MoneyWeek regular James Ferguson about the rise in infections in coronavirus and what the data is really telling us.
17 Sep 2020