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

Has the “jam tomorrow” bubble popped already?
Stockmarkets

Has the “jam tomorrow” bubble popped already?

Fund managers have had a good year so far. John Stepek looks at what to expect from markets until year end.
6 Dec 2021
Three stocks that should profit from the dash for digital growth
Share tips

Three stocks that should profit from the dash for digital growth

Professional investor Christopher Versace of the Digital Infrastructure and Connectivity UCITS ETF picks three digital growth stocks to buy now.
6 Dec 2021
JD Wetherspoon: why investors should head to the pub
Trading

JD Wetherspoon: why investors should head to the pub

Pub group JD Wetherspoon is a solid operator, and is due a bounce when the pandemic eases. Matthew Partridge picks the best way to play it.
6 Dec 2021
Share tips of the week – 3 December
Share tips

Share tips of the week – 3 December

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
3 Dec 2021

Most Popular

Bubbles grow in global property markets as house prices continue to rise
Property

Bubbles grow in global property markets as house prices continue to rise

House prices grew by 6% in the year to mid-2021 in 25 global cities, with the German property market in particular showing signs of overheating.
3 Dec 2021
Investing in time
Sponsored

Investing in time

SPONSORED CONTENT – Watch collecting can be addictive and expensive, but it can also be a very sound investment strategy
3 Dec 2021
Three safe bets on the growing online gambling sector
Share tips

Three safe bets on the growing online gambling sector

Professional investor Aaron Fischer, creator of the Fischer Sports Betting and iGaming ETF, picks three of his favourite online gambling stocks.
29 Nov 2021