Sound Oil completes drilling Italian Nervesa well

11th Jun 2013 13:52

Sound Oil, the AIM-listed Italian focused upstream oil and gas company has reported that the Nervesa appraisal well has successfully completed drilling of the 16" hole section through the Plio-Pleistocene gravel formations to a depth of 322m. The company added that operations were in progress to install the 13 3/8" casing.In an earlier company announcement issued on March 28th, Sound Oil's Chief Executive Officer James Parsons reported that Nervesa had an independently assessed base case value of approximately $60m.Sound Oil has three other wells in Italy. These comprise Laura, another appraisal well and two exploration wells, Badile and Zibido. Together with Nervesa, all four wells are scheduled to be drilled by mid-2015 and collectively they represent nearly a billion dollars of independently assessed net present value with annual free cash flows exceeding $300m.The company's share price was down 6.25% to 9.38p at 13:47 on Tuesday.MF