LON:SOU | Sound Oil - The Next Encore / Caza ?

21st Feb '11 by Isaac

17 comments 10956 reads

Just bought a few of these to tuck away in the bottom drawer and see how it plays out. Should be an exciting part of my portfolio.

Don't have time to give too much details about the company right now. But worth reading the below from 7bore on ADVFN

Sound Oil plc (SOU)
Shares in issue…..1,515,306,331
Share price………2.80p (2.65p-2.80p)
Mkt Cap…………£42.4m
Date: 17 Feb 11

Updated due to new Italy Feb 11 applications now on SOU website:

FEB 2011:
http://www.soundoil.co.uk/documents/Italy_Applications_Feb2011.pdf
• Exclusive Application: Manfria Oil Discovery (onshore Sicily):Assignment expected 2H 2011
• Production Concession ex-ENI (Central Italy):Award expected H1 2011

So thats another TWO RNS's to add to the 2011 newsflow !

Presentation - 11 Feb 11
http://www.soundoil.co.uk/documents/Sound%20Investors%20presentation%20feb%202011%20handout%20PDF.pdf

http://www.advfn.com/cmn/fbb/thread.php3?id=12105920&from=2988

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Half Yearly Report

RNS Number : 1494P

Sound Oil PLC

29 September 2011

Highlights

· Successful acquisition of Consul

· New permit awarded to Apennine 100% on Costa del Sole, Sicily

· Casa Tiberi-1 to start drilling in October

· Three well drilling programme at Citarum in Indonesia

· Sungai-Lahei-1 well at Bangkanai to start drilling in November

· Cash at 30 June 2011 stood at £11.4 million

During June we farmed-in to the Montemarciano permit near Ancona, Italy and became the Operator. Construction of the well site is on schedule for the Casa Tiberi-1 farm-in exploration well which we expect to start drilling in late October. In August we were awarded the gas field at Rapagnano, also in the Ancona area, at no cost to the Company. This is a small field which was shut-in several years ago when it was still producing revenues of US$60,000 per month. Also in the summer we perforated two gas zones in the Marciano gas field in the very south of Italy. Although a very satisfactory gas flow occurred from the upper sand on a short-term test, later analysis of the pressure data indicated that the reservoir was of limited extent.

In Java, Indonesia, work is underway on the well sites for three substantial exploration prospects on the Citarum PSC where we have a 20% interest. The site at Jatayu is now complete and the road to the Cataka well site 50% finished. The operator Pan Orient Energy advises that the Jatayu-1 well is expected to start in late November followed by Cataka-1 and the third well Geulis-1, back to back.

In Kalimantan, Indonesia we have a 5% carried interest in a two well exploration programme and the development of the Kerendan gas field on the Bangkanai PSC. Salamander Energy, the Operator, advises that the Sungai Lahei-1 exploration well will start drilling on a very large prospect at the end of November. This deep well will be turned into the first production well in the shallower overlying Kerendan gas field. During 2012 a further 3 wells will be drilled at Kerendan which is scheduled to start gas production in mid 2013.

http://www.investegate.co.uk/Article.aspx?id=201109290700531494P

Isaac

25th Mar '11

Did readers get some of these when I first highlighted here ?

I note some experts are thinking of joining the party : http://www.stockopedia.com/content/gerry-orbell-raises-the-volume-at-sound-oil-55148/?comment=3#3

21st Nov '11

Time to get back into these IMO...

Nice start to the exploration programme....Looking forward to the 5 well programme in Indonesia and two more wells from Italy, plenty of excitement to come....

Sound Oil PLC
Operations update: Casa Tiberi-1 well
RNS Number : 4182S
Sound Oil PLC
21 November 2011

Operations update: Casa Tiberi-1 well, Montemarciano Permit

Sound Oil, the upstream oil and gas company with assets in Italy and Indonesia, is pleased to announce that the Casa Tiberi-1 exploration well, operated by its wholly-owned subsidiary Apennine Energy, has been successfully completed. The well achieved a gas flow rate of 26,000 scmd (approximately 0.91 MMscfd) on a restricted choke during clean-up operations. The well is currently being suspended and the drilling rig demobilised. The Company will study data from the well to determine a programme for additional testing of the well and subsequent potential commercial production of the discovery.

http://www.investegate.co.uk/Article.aspx?id=201111210700174182S

23rd Nov '11

Sound Oil Has Better Luck With Its Second Drilling In Italy With The Casa Tiberi-1 Exploration Well

We wrote recently that Aim -quoted Sound Oil‘s attempt to refocus on Italy with the purchase of Consul Oil & Gas and a whole clutch of low cost prospects, after delays and frustrations with its assets in Indonesia, had not gone entirely smoothly.

After initial enthusiasm for the shares when the Italy venture was first announced, there was disappointment when the initial well in Italy failed to come good. The Marciano gas-to-electricity project in southern Italy, sunk last summer, was deemed sub-commercial. The shares took a dive with the news of the duster. But the disappointment was tempered by the fact that the moveable surface gear owned by Sound could prove valuable elsewhere in the portfolio

We said then despite the setback at Marciano there was still much to play for with other assets in the Montemarciano and Rapagnano Basins in the Ancona area of Italy and the Cost Del Sole Permit offshore Sicily. Now, the company has recently reported that its second drill in Italy, the Casa Tiberi exploration located in Falconara, Ancona and operated by the company’s wholly owned subsidiary Apennine Energy Sri has been successfully drilled to a total depth of 715 metres measured depth. Logging of the well has established a gross hydrocarbon column of 14.9 metres, comprising several high quality gas bearing reservoir sands. Sound Oil is suspending the well as a gas discovery pending future work in the coming months, to determine the extent and commerciality of the accumulation

http://oilbarrel.com/news/sound-oil-has-better-luck-with-its-second-drilling-in-italy-with-the-casa-tiberi-1-exploration-well

29th Nov '11

Interesting post on iii summarising the investment case of Sound quite well.

SOund oil - On a more serious note M33 Investor 8

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At the beginning of the year the board was full of optimism for the future, the Santa rally followed through with Sound going to 6p and we were planning a 23p party in a far flung corner of the Sound empire - Wiggy's house I believe was on the agenda.

Reality, brought on by the collapse of the Euro economies and a looming second recession looking a distinct possibility, and I can't help but see the similarities between Europe and some BB's.

Blind faith in the currency and the company (Brussels) with the usual rampers - IMF are going to bail Italy out - speeding ticket - oh, aren't you? America is going to bail Europe out !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! , George Osbourne is going to reduce the deficit - derampers arrive shorting the sh ite out of Europe and the SP falls .......... It would make an interesting film but Entro, I think Lisa Minnelli would be a better choice rather than Angela.

http://www.youtube.com/watch?v=CX-24Zm0bjk

As a change in venue, we do own a corner of an olive grove in Italy with a bar down the road, and although Marciano wasn't commercial I'm sure there is enough gas left to run an barbecue.

All is not lost - Pan Orient are moving the rig onto the Cataka-1 site as I type, and we start drilling for P50 440Bscf of gas in December - net to Sound 88Bscf or ~13mBoe.

If that's not enough to whet the appetite, Salamander also kick off their campaign with the Sungai Lahei-1 Kerendan well which also targets Bricky's billion dollar upside potential Kerendan Deeps P50 1.4tcf (2.8tcf upside P10). Net to Sound 70Bscf ~10MBoe.

For the New Year we have the PanOrient follow up with Jatayu - P50 380Bcf. Sound 20% 76Bcf net ~ 10MBoe, whilst closer to home, our Italian contingent step in with the Rapagnano Italy (100%) Well completion.

And there is more - and more - and more - Maybe we will make Wiggys house party after all.

Q1 2012 Salamander Drill - Indonesia Kerendan Gas Field well K-1R - Development Drilling

Q1 2012 – Pan Orient Drill Java - Geulis 1 – Sound 20%

Q2 2012 – Sound Drill - Nervesa Gas Italy (100 %) Sound increased their interest to 100% at the beginning of November and put in place a funding plan.

Q2 2012 - Kerendan Gas Field - Indonesia K-3R - Development Drilling.

Q2 2012 - Kerendan Gas Field - Indonesia K-4 - Development Drilling.

Q3 2012 West Kerendan Indonesia Exploration Drilling.

Not to forget that Nervesa is now 100% Sound's and we have the finance to drill in 2012, whilst a Badille farm in is still a real possibility.

With the SP languishing at levels not seen for over a year when most of the above work program was on out wish list, to say this is a buying opportunity is a bit of an understatement.

The only problem is as I have even more Sound shares tucked away.

Happy Christmas and hopefully, a very Prosporous New Year

30th Nov '11

In for some more.....@ 1.71

Interesting presentation on Sound website :

Sound Oil is an active EP company with focus on Italy and Indonesia
•
Drilling and work programme fully funded to end 2012:
•
Drilling 7 high impact exploratory wells in Italy and Indonesia – started October 2011
•
Re-developing the small Rapagnano Gas Field in Italy – on stream mid 2012
•
Developing the Kerendan Gas Field in Indonesia – on stream mid 2013
•
Opportunities exist on several large scale assets to farm out or fund

Italy Background

3rd / 5th largest producer of oil / gas in Western Europe

•

Large gas market gas importing 90% of its hydrocarbons: Hence good price ~$10/Mscf +

•

Good fiscal terms – net take after tax is 54%

•

Licenses involve low initial outlay and exit costs

•

Low onshore operating costs

•

Potential for further IOC divestments and long tail of small independent players

Italy Operations
Casa Tiberi-1 Exploration Well
•
Drill October-November 2011
•
Rapagnao Gas Field
•
Re-establish production 2012
•
Nervesa Gas Field Appraisal Well
•
Drill in 2012

http://www.soundoil.co.uk/documents/Sound_Activity_Update_Italy_Nov2011.pdf

A bit on the CEO Gerry Orbell (also Antrim Energy Chairman):

Dr. Gerry Orbell, Ph.D

Chairman

Gerry Orbell is a petroleum geologist with more than 30 years of international experience. He is Executive Chairman of Sound Oil plc, a public company listed on the London AIM. Previously, he was Executive Director, Exploration and Production, Premier Oil, plc, where he was responsible for the worldwide oil and gas exploration and production program. From 1983 to 1992, he served in various management roles with Fina Development Ltd. and Fina Exploration, including Director of Oil Exploration and Production. Dr. Orbell holds a Ph.D in geology from University College, London University and has been a member of the American Association of Petroleum Geologists since 1975. He is a board member with two private oil and gas companies and a director and chairman of the Audit Committee of Valpk Ltd. in the United Kingdom.

http://www.antrimenergy.com/investors.php/bod

And from Sound Oil website :

Gerald Orbell, Chairman and Chief Executive (age 64)
Gerald Orbell is a petroleum geologist with over 30 years of technical, managerial and director level experience in the hydrocarbon and utilities sectors. Gerald has previously held the position of executive director of Fina Exploration, Fina Development, Premier Oil plc and United Utilities plc. Gerald is currently the chairman of Antrim Energy Inc. where he oversees the company's business in the UK. He is also a member of the boards of Consul Oil & Gas Limited, Moorland Energy and Valpak Limited, where he is also chairman of the audit committee.

http://www.soundoil.co.uk/about_board.asp

In this business it pays to have good management with many years of experience and a succesful track record of working for quality companies like Premier Oil and those that studied at credibly Universities, UCL. As well as his more recent success with Antrim in the North Sea - back those that have good track records.

In June 2006 the Company acquired the entire share capital of the private Indonesian company Mitra Energia. At this time additional funds of £11.7 million were raised to fund a programme of exploration drilling of up to five exploration wells and initial development of the Kerendan gas field. The enlarged company was re-admitted to AIM in July 2006

As a result of the Mitra acquisition Sound gained working interests in two licences onshore Indonesia: Bangkanai PSC (34.99%) in Kalimantan and Citarum PSC (20%) in Java.

A Plan of Development (POD) for the Kerendan gas field on Bangkanai PSC was approved in July 2006.

The Company participated in its first exploration well, Pasundan-1, on the Citarum PSC in 2007. The well was P&A in 2008 after re-entry and extensive testing.

Salamander Energy (LON:SMDR) is increasing its interest in the Bangkanai PSC (production sharing contract) it operates in Indonesia to 80 percent by acquiring Elnusa Chariot International Ltd’s 11 percent holding for US$6 million in cash

The development of the Kerendan field remains in the planning stage and the project will probably not now deliver first gas until 2014, being dependent on state electricity company schedules. As a result it was decided to farm-down our interest in the Bangkanai PSC to 5% in May 2010, but to remain fully carried on all expenditures by the Operator until first gas.

http://www.soundoil.co.uk/about_overview.asp

Salamander Energy raises interest in Bangkanai PSC in Indonesia to 80 pct
23rd Nov 2011, 7:39 am by Andre Lamberti

The Bangkanai PSC is located in Central Kalimantan, Indonesia, and is one of Salamander's core focus areas. It contains the Kerendan gas field development where a gas sales agreement was signed this year for the supply of 20 billion British thermal units per day for 20 years.

The commercialisation of this gas resulted in approximately 16.5 million barrels of oil equivalent of proved and probable (2P) reserves being bookable net to Salamander.

In addition, the field contains a further 31.9 MMboe of gross contingent resource and is expected to be ready to deliver gas in mid-2013. As a result of the latest transaction, Salamander will be in a position to book an additional 2.6 MMboe of net 2P reserves and 3.5 MMboe of net contingent resources, it said.

In addition to the Kerendan field development, the Bangkanai PSC has extensive exploration potential. The DrillCo-1 land rig is due to mobilise to the Kerendan field site next month ahead of both development drilling and exploration drilling on the West Kerendan and Sungai Lahei prospects.

Exploratory drilling on West Kerendan and Sungai Lahei will target approximately 900 billion cubic feet of gross mean prospective resource.

Salamander’s partners in the Bangkanai PSC are domestic group Medco Energi with a 15 percent interest and Sound Oil (LON:SOU) with 5 percent.

http://www.proactiveinvestors.co.uk/companies/news/36000/salamander-energy-raises-interest-in-bangkanai-psc-in-indonesia-to-80-pct-36000.html

Citarum PSC

Pan Orient, through its subsidiaries, is the operator of the Citarum PSC in Indonesia and expects to commence a high impact three well exploration drilling program late in the third quarter or early in the fourth quarter of 2011. This program will target a combined un-risked best estimate prospective resource of 1.1 trillion cubic feet of natural gas (net to Pan Orient's 77% operated interest) on the heavily populated island of Java, and in a region with excellent pipeline infrastructure and robust natural gas demand

http://www.rigzone.com/news/article.asp?a_id=105464

http://www.panorient.ca/index.php?option=com_content&view=article&id=92&Itemid=104

"At the Citarum PSC on-shore Java (Pan Orient operator and 77% ownership), one location (Jatayu-1) has been completed and a second location (Cataka-1) is approximately 90% complete after having experienced some delay as a result of annual monsoon rains. Surface casing has been set on both wells utilizing a service rig and drilling rig mobilization on to the Cataka-1 location is planned to commence on November 26th with drilling to commence in early to mid-December. Construction on the third location of Geulis-1 will commence shortly after the completion of construction on Cataka-1. All three wells are planned to be drilled back to back starting with Cataka-1 in the first half of December 2011."

http://www.investegate.co.uk/Article.aspx?id=201111251346568081S

So we have a 20% interest in the Citarum PSC & we are drilling 3 back to back wells with target a combined un-risked best estimate prospective resource of 1.1 trillion cubic feet of natural gas (net to Pan Orient's 77% operated interest), so 1.42billion in total which Sound have unrisked potential of 0.28 billion and yet Sound is only valued at £30 million marked cap with £11.4 million in cash plus Italian assets.

Let's not forget the recent Casa Tiberi-1 exploration well in Italy, Logging of the well has established a gross hydrocarbon column of 14.9 m, comprising several high quality gas bearing reservoir sands.

http://www.investegate.co.uk/Article.aspx?id=201111151203321296S

This market is stoooopid.

1st Dec '11

Investec upgrades Sound Oil target after latest Italian acquisition
16th Nov 2011, 1:57 pm by Jamie Ashcroft

City broker Investec has upgraded its target price on Sound Oil (LON:SOU) following the group’s most recent acquisition in Italy.

The broker’s target rises from 4 to 6p a share, which is some 140 per cent higher than the current price of 2.45p.

Last week Sound announced that it was taking full control of the Strombone and Nervesa discoveries.

It agreed a deal with joint venture partner Celtique Energie SpA. As a result of the transaction Sound Oil will increase its stake in three Italian permits from 50 to 100 per cent.

Concurrently an independent report by Fugro significantly increased the value of the two discoveries.

Taking into account the additional equity in the two discoveries Investec now estimates Sound Oil’s assets are worth 5.64p per share.

“Sound is now in a strong position to develop low risk contingent resource assets in 2012, with full control over the asset base,” said Investec analyst Stuart Joyner.

“Increased visibility means we now give partial credit for the risked value of a remodelled exploration programme (+1.8p).

“This reflects our view that, with the impasse on Nervesa and Strombone lifted by the deal, we are now more confident on the drilling timetable for 2012 and 2013.”

Sound Oil received a further boost yesterday as it revealed that the Casa Tiberi-1 well in central Italy has discovered several high quality gas bearing reservoir sands.

It told investors that the exploration well was successfully drilled to a depth of 715 metres. Subsequent logging has established a gross hydrocarbon column of 14.9 metres.

Casa Tiberi-1 has now been suspended as a gas discovery. Sound Oil will conduct more work on the well in the coming months.

This will help determine the extent and commerciality of the accumulation, it said.

Sound Oil’s original farm-in obligations have now been met on the Montemarciano Permit. As a result its wholly-owned subsidiary Apennine Energy now earned its 75 per cent in the project.

Additionally Sound revealed that the small private Italian company, called SARP, which owns the other 25 per cent has withdrawn from the well and assigned its interest in the well to Sound Oil.

The company now owns the entire equity in the Casa Tiberi gas discovery and it has a 75 per cent interest in the surrounding areas.

http://www.proactiveinvestors.co.uk/companies/news/35692/investec-upgrades-sound-oil-target-after-latest-italian-acquisition-35692.html

She looks perky this morning...

PFhunting

Looks like financing isn't going to be an issue for the year ahead

http://investegate.co.uk/Article.aspx?id=201112011412471855T

Sean Benn

6th Mar '13

Issac Perhaps you could use this mate:

http://www.stockopedia.com/content/sound-oil-plc-oil-gas-exploration-70421/

Sound Oil - The next Encore / Caza ?

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Isaac

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Sound Oil PLC

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