Italy: Sound Oil preparing to drill CasaTiberi-1 in the Montemarciano permit
22 Aug 2011
Sound Oil has announced that its subsidiary Apennine Energy commenced civil engineering works on 18 August at the drilling site for the farm-in exploration well, Casa Tiberi-1, at the Montemarciano permit (75% Sound Oil interest). Drilling operations are expected to commence in the next 90 days and the budgeted cost of the well to the Company is US$1.5 million.
Commenting on the above, Gerry Orbell, Sound Oil's Chairman and Chief Executive said: 'Casa Tiberi-1 is the first well that we shall be drilling as operator. The competent person estimated the risk of finding hydrocarbons to be 35% which is relatively low for an exploration well. If successful, the most likely worth to Sound is approx. US$12 million based on the present evidence but I am hoping for the upside which could be worth US$37 million.'
1. The Casa Tiberi-1 well site is located in the Falconara Marittima Comune, in the Province of Ancona in the Marche Region of Italy.
2. As previously announced, a competent persons report produced by Fugro Robertson estimated a 35% chance of success and base case (P50) prospective recoverable resources of 5.7 Bscf at the Casa Tiberi prospect with an estimated value to Sound Oil of US$11.6 million (NPV10 success case basis). For the upside (P10) case their estimate is 14.9 Bscf (NPV10 US$37.1 million) and for the low side (P90) case, 2.2 Bscf (NPV10 US$2.1 million). Click here for the Montemarciano competent persons report.
Source: Sound Oil