Italy-focused junior explorer Sound Oil announced Tuesday a significant upgrade in net present value of its Badile gas prospect at Po Valley, onshore Italy.
Badile is 100 percent-owned and operated by Sound and is located some 28 miles southwest the geologically-analogous Malossa gas field – which has produced a total of 177 billion standard cubic feet of gas along with condensate.
Sound said Tuesday that an independent competent person's report (CPR) of the prospect, completed by ERC Equipoise, confirmed a best estimate NPV10 of EUR 486 million ($360 million) – a 60-percent increase over the previous CPR estimate. The CPR has also identified a high case NPV10 of EUR 1.7 billion ($1.3 billion) and a low case NPV10 of EUR 101 million ($75 million).
Underpinning these estimates are gross prospective resources of 178 billion standard cubic feet of gas, with a high case estimate of 673 bcf and a low case estimate of 46 bcf. The study has also confirmed a 22-percent geological chance of success for the prospect.
Commenting in a company statement, Sound CEO James Parsons said:
"Badile remains the largest and most strategic asset in Sound Oil's portfolio. We continue to prepare the company for drilling this asset with a view to capturing the upside NPV, which now exceeds $2 billion."
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