Sound Oil to go ahead with second well of Nervesa gas discovery

2nd Sep 2014 11:28

Mediterranean-focused oil and gas producer Sound Oil said it has received the green light to go ahead with the second appraisal well of the Nervesa gas discovery.The Treviso Province authorities have approved the environmental impact assessment for the well and the company said it expected the final approval from the Veneto Region and the drilling authorisation from the Italian Ministry of Economic Development to follow suit."Nervesa remains a flagship project for Sound Oil with an estimated net present value at a discount rate of 10% of circa $66m," group chief executive James Parsons said."I am also very encouraged by the streamlining of the Italian oil and gas permitting process, announced by the prime minister on Friday, which we expect to result in faster approval timelines going forward." The firm said it hopes to start drilling operations on the site by the end of 2014.Sound shares were up 4.08% to 12.75p at 10:15 on Tuesday.DC