Sound Oil, the Italy-focused upstream oil and gas company, has secured a rig for the forthcoming Nervesa appraisal well.
Sound expects to drill the appraisal well at the end of the year, once final governmental approval has been given.
James Parsons, Sound Oil's Chief Executive Officer, commented: "The company continues on track to drill the Nervesa appraisal well, having now secured the rig. The independently assessed annual cash flows (after tax) from Nervesa are estimated to be above US$14m pa initially and stay above US$12 million for each of the first seven years, generating a total net present value of US$62m."
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The company estimates that the remaining spend for the appraisal well is approximately €2.9m including the rig hire.
Under the terms of the agreement to hire the rig Sound Oil also has the option to utilise the same rig for the Strombone appraisal well immediately following the Nervesa well.
CM
