Business
Gas Sales Contracts and Badile Land Purchase
Gas Sales Contracts and Badile Land Purchase.
About this update from Sound Energy Plc
[{"type":"text","content":"\n \nRNS Number : 0312U Sound Oil PLC 13 October 2014 \n \n\n13 October 2014\n \nSound Oil plc\n(\"Sound Oil\" or the \"Company\")\n \nGas Sales Contracts and Badile Land Purchase\n \nSound Oil, the European / Mediterranean focused upstream oil and gas company, is pleased to announce the signature of two gas sales contracts and developments in relation to the Badile drill site land acquisition first announced by the Company on 7 August 2014. These operational contracts span three of the Company's assets.\n \nRapagnano Gas Sales Contract\n \nThe Company has entered into a 12 month gas sales agreement for the Rapagnano gas field with Steca Energia Srl (the \"Rapagnano Gas Sales Agreement\"). This agreement, which runs to September 2015, includes no \"take or pay\" component and is based on a variable market price. The Company estimates the Rapagnano Gas Sales Agreement will deliver an average price of Euro 0.267 per Scm (US$9.8/Mscf) over its term.\n \nCasa Tiberi Gas Sales Contract\n \nA 12 month Gas Sales Agreement in respect of the Casa Tiberi gas field has been signed with Prometeo SpA. Like the Rapagnano Gas Sales Agreement, this agreement also includes no \"take or pay\" provision however provides for a fixed price of Euro 0.269 per Scm (US$9.9/Mscf) until September 2015.\n \nBadile Drill Site Land Acquisition\n \nThe Company is also pleased to announce that it has now contracted for the purchase of a 59,140 square metre plot of industrial land in the Lombardy region of Italy for a total consideration of Euro 1.8 million (excluding VAT). The terms of this land acquisition were first announced by the Company on 7 August 2014. The land will host the drill site for the initial Badile exploration well and for all other production wells required to exploit the discovery. \n \n \nFor further information please contact:\n \n\n\n\n\nSound Oil\nJames Parsons, Chief Executive Officer\n \n \n\n\n \[email protected]\n \n \n\n\n\n\nSmith & Williamson - Nominated Adviser\nAzhic Basirov\nDavid Jones\nBen Jeynes\n \n\n\nTel: +44 (0)20 7131 4000\n\n\n\n\nPeel Hunt - Broker\nRichard Crichton\nCharles Batten\n \n\n\nTel: +44 (0)20 7418 8900\n\n\n\n\n \nScm means standard cubic metres; Scmd means stand...