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."

Advertisement - Article continues below

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.




Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
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
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

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


House price crash: UK property prices are falling – so where next?

With UK property prices falling for the first time in eight years, are we about to see a house price crash? John Stepek looks at what’s behind the sli…
2 Jul 2020

The end of the bond bull market and the return of inflation

Central bank stimulus, surging post-lockdown demand and the end of the 40-year bond bull market. It all points to inflation, says John Stepek. Here’s …
30 Jun 2020

How can markets hit new record highs when the economy is in such a mess?

Despite the world being in the midst of a global pandemic, America's Nasdaq stock index just hit an all-time high. And it's not the only index on a bu…
3 Jul 2020