Sound Oil Revises Schedule to Accelerate Cash Flow
Italy-focused Sound Oil announced Wednesday that it has revised its near-term drilling program to accelerate cash flow from its onshore Nervesa discovery and to preserve cash for the company's most material prospects.
Sound plans to drill its Badile prospect as originally scheduled in 2014, but now with a 100-percent equity position in the prospect and Sound operatorship. It also plans to drill the Zibido prospect, a second material exploration prospect in the Po Valley, northern Italy, where Sound's Nervesa discovery is located.
At Nervesa itself Sound is planning to address the northern extension of the discovery by drilling a second well in the fourth quarter of 2013 with a very to accelerating production and cash flow from what the firm describes as its flagship asset.
Meanwhile, Sound confirmed that it would drill the Laura discovery as originally scheduled in 4Q 2014 using a long-reach deviated well from onshore.
Sound will contract a 2,000 to 3,000 horsepower electric rig on an exclusive basis for a period of 18 months beginning in 1Q 2014 in order to cover the Badile, Laura and Zibido drills.
Sound will defer the Strombone appraisal well in order to free up an operational window for its second Nervesa well in 3Q/4Q 2013 and to free up $9 million in cash to fund its increased equity stake in Badile. The firm may also include the Casa Tiberi field development in its 3Q 2014 operational window.
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