Sound Oil, the European / Mediterranean focused upstream oil and gas company, is pleased to update investors on its continued progress with the proposed second well addressing the Southern limb of the Nervesa gas discovery, onshore Italy.
The 5,000psi single completion wellhead has now been delivered to a local warehouse and is ready for installation.
The remaining long lead items have now also been ordered and are scheduled for delivery during September. These additional items include a full set of casing, tubing and the liner hanger.
James Parsons, Sound Oil's Chief Executive Officer, commented, "Preparations for the second appraisal well on the 24 Bscf Nervesa gas discovery continue. The arrival of the wellhead and the procurement of the long lead items positions us, from September 2014, to commence operations on site immediately once the permission to drill is granted.
The discovery has an estimated NPV10 of circa US$66 million (100%) and is expected to provide material cash flows to the Company from 2015. The previously announced farm in on this asset is expected to be signed shortly."