Italy-focused Sound Oil reported Wednesday that it has successfully tested its Nervesa well, onshore northern Italy.
Sound said the well test achieved a stabilized total gas flow rate of 2.7 million standard cubic feet of gas per day from several sandstone intervals in the Upper Miocene San Dona Formation.
The company also confirmed that the P50 estimate of recoverable gas resources at Nervesa has increased from 21 billion cubic feet to 24 Bcf.
Sound now plans to continue with plans to apply for a production concession with a view to achieving first gas sales at Nervesa in 2015 as well as drill a second well on the field addressing the southern part of the structure.
Sound will also plans to secure a reserve-based lending facility to provide funding for the next stage of the company’s development. In the meantime, the firm has entered into an asset-backed bridge loan facility for some $3.75 million with a syndicate of private investors.
Beyond the Nervesa project, Sound plans to continue with the second phase of its strategy, which includes preparing for 2014 drilling at its Laura and Badile assets.
Sound CEO James Parsons commented in a company statement:
"This is a significant milestone for the company. In October 2012 we set a strategy of transformational growth through the drilling of four material wells in Italy within twenty-four months. Nervesa, the first of those wells, has been successful and is expected to provide material cash flows from 2015 as well as enabling the funding of a portion of the forward drill programme."
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