Italy-focused Sound Oil is making progress with its preparations for a second well on its Nervesa discovery in northern Italy after signing a land lease contract for the well, the firm reported Tuesday.
When Sound drilled its first well at Nervesa last summer, it discovered 151 feet of net gas pay in 13 separate zones. The second well, which is due to be spud during the first half of this year once final governmental approval has been obtained, will be used to appraise the southern limb of the Nervesa discovery.
The company has now secured the use of a 18,300 square meter plot of land for a period of two years as part of its preparations. It said that the location of this plot will enable the company to optimize the well trajectory, including minimizing the well deviation.
Sound CEO James Parsons commented in a company statement:
"Preparations for the second appraisal well on the 24-billion standard cubic feet Nervesa gas discovery continue. The discovery has an estimated NPV10 [net present value] of circa $66 million and is expected to provide material cash flows to the company from 2015."
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