Business
Successful Nervesa Well Test
Successful Nervesa Well Test.
About this update from Sound Energy Plc
[{"type":"text","content":"\n \nRNS Number : 1633N Sound Oil PLC 04 September 2013 \n \n\n \n4 September 2013\n \nSound Oil plc\n(\"Sound Oil\" or the \"Company\")\n \nSuccessful Nervesa Well Test\n \nSound Oil, the European / Mediterranean focused upstream oil and gas company is pleased to announce a positive well test at the onshore Nervesa discovery in Northern Italy.\n \nThe well test achieved a stabilised total gas flow rate of 2.7 MMscfd from multiple sandstone intervals in the Upper Miocene San Dona Formation using a dual string completion. \n \nThe Company is also pleased to confirm that, following a revision of its reservoir model for the full field, the P50 estimate of recoverable gas resources at Nervesa has increased from 21 Bcf (with an estimated NPV10 of US$58m) to 24 Bcf (with an estimated NPV10 of circa US$66m). \n \nFollowing these successful results, the Company will continue with its plans to:\n \n(i) apply for a Production Concession with a view to achieving first gas sales at Nervesa in 2015;\n \n(ii) drill a second well at Nervesa, addressing the Southern part of the structure; and\n \n(iii) secure a Reserve Based Lending (\"RBL\") facility to provide funding for the next stage of Sound Oil's development;\n \nIn anticipation of securing an RBL facility, the Company has entered into an asset backed bridge loan facility (the \"Bridge Loan\") for some £2.5 million with a syndicate of private investors. The Bridge Loan matures in February 2015, carries a coupon of 10% per annum and an average annual fee of 9%. It is the Company's intention to repay the Bridge Loan with a portion of the proceeds from the RBL facility. The Company has also renewed its existing Standby Equity Distribution Agreement (\"SEDA\") with Yorkville Advisors LLP for a period of three years on the pre-existing terms and without an upfront fee. \n \nBeyond Nervesa, the Company will continue with the second phase of its strategy, which includes preparing for 2014 drilling at Laura and Badile. \n \nThe Company is pleased to invite investors to a conference call on 6th September 2013 at 1100. Details can be obtained from Annabelle Griffiths at A.Gr...