Sound Oil disappointed by Marciano testing results in Italy

Monday, Jul 25 2011 by
5
Sound Oil disappointed by Marciano testing results in Italy

Sound Oil (LON:SOU) , the oil and gas company with assets in Italy and Indonesia, saw its shares fall heavily this morning on news that the gas reservoir at its hitherto promising Marciano-1 ST well was uncommercial. The company began testing work on the Marciano discovery well during June, which included the perforation of two potential gas-bearing zones. However, independent analysis of the pressure data from the test of the upper zone at Marciano concluded that initial gas-in-place in the tested reservoir interval was insufficient for commercial production. Sound Oil has now suspended operations at the site ahead of a future review of the permit. Shares in the company slumped by 23% to 2.45p.

Gerry Orbell, Sound Oil’s chairman and chief executive, said: “The news from Marciano is clearly disappointing, especially after such an encouraging initial flow rate. The Marciano project was, however, a small part of the value of our portfolio. We will now focus our efforts on the four well programme we expect to be starting in the autumn and also preparing for pending applications in Italy which we expect to be awarded shortly.” In an interview with Stockopedia in March, Mr Orbell said the company was excited at the prospect of a multi-well drilling and appraisal campaign across its projects in Italy and Indonesia during the next two years.

Elsewhere, Sound Oil reported that an application to begin the site construction for the Casa Tiberi-1 exploration well on the Montemarciano permit in Italy had been submitted to the Ministry of Economic Development on 20 July. Sound Oil farmed in to a 75% stake in Montemarciano in June. Civil works are expected to start before 24 August with the intention to spud the well no later than 90 days after that. Meanwhile, at the company’s 100% held Badile permit, the interpretation of the 3D seismic data is underway and preliminary results are expected by the end of July.

In Indonesia, where Sound Oil has a 20% stake in the Citarum PSC, the licence operator, Pan Orient Energy, has reported that well site construction has started at the exploration location at Jatayu and is expected to be completed in two to three weeks. Construction will then begin immediately on a second exploration well site at Cataka. These sites are for the next two wells on this permit later in the year. A third well location is currently being reviewed by the Pan Orient and the authorities.


Disclaimer:  

As per our Terms of Use, Stockopedia is a financial news & data site, discussion forum and content aggregator. Our site should be used for educational & informational purposes only. We do not provide investment advice, recommendations or views as to whether an investment or strategy is suited to the investment needs of a specific individual. You should make your own decisions and seek independent professional advice before doing so. Remember: Shares can go down as well as up. Past performance is not a guide to future performance & investors may not get back the amount invested. ?>


Do you like this Post?
Yes
No
5 thumbs up
0 thumbs down
Share this post with friends



Sound Energy plc is a Mediterranean upstream company. The principal activity of the Company and its subsidiaries is the exploration, appraisal and development to production as an operator in the oil and gas industry. Its principal activity is in Italy and Morocco. It operates through three segments: corporate; exploration and appraisal, and development and production. Its Tendrara permit is located in the Figuig Province, NorthEast Morocco. The Tendrara permit area, which is sub-divided into over eight blocks, covers a combined area of approximately 14,500 square kilometers. The Meridja permit is located next to its Tendrara license, and covers an area of over 9,000 square kilometers. The Sidi Moktar permit is located in the Essaouira Basin in central Morocco and is sub-divided into over three blocks (North, South and West). The Badile Permit is situated in the Piedmont Lombard Basin in northern Italy. Its Rapagnano Gas Field concession is located in Fermo Province, Marche Region. more »

LSE Price
23.5p
Change
 
Mkt Cap (£m)
248
P/E (fwd)
n/a
Yield (fwd)
n/a



  Is LON:SOU fundamentally strong or weak? Find out More »


What's your view on this news? Log In to Comment Now

You can track all @StockoChat comments via Twitter


About Stockopedia News

Stockopedia News

Stockopedia News Bulletins aim to report on stories and companies that are relevant to and popular with online investors.  It's a free service provided to registered users of Stockopedia. 



Stock Picking Tutorial Centre


Related Content

Let’s get you setup so you get the most out of our service
Done, Let's add some stocks
Brilliant - You've created a folio! Now let's add some stocks to it.

  • Apple (AAPL)

  • Shell (RDSA)

  • Twitter (TWTR)

  • Volkswagon AG (VOK)

  • McDonalds (MCD)

  • Vodafone (VOD)

  • Barratt Homes (BDEV)

  • Microsoft (MSFT)

  • Tesco (TSCO)
Save and show me my analysis