Italy-focused Sound Oil announced Thursday that it has made an agreement to buy a plot of land in the Lombardy region of the country that will host the drill site for its initial Badile exploration well. Sound will pay $2.4 million for the 637,000-square foot plot.
Sound said that it has now ordered a specially-designed flanged wellhead from Breda Energia. The wellhead is expected in January 2015.
The remaining long lead items, including advanced technology casing and tubing, will be purchased under a framework agreement with Tenaris Dalmine, which is close to finalization.
Sound CEO James Parsons commented in a company statement:
"The company is well advanced with the procurement phase for Badile, and will shortly strategically position itself as landlord of the drill site. Badile remains the largest and most strategic asset in Sound Oil's portfolio with an independently assessed mid case estimate of 178 billion cubic feet equivalent, a best estimate NPV10 of approximately $650 million and a high case NPV10 of more than $2 billion.
"We expect to commence drilling of this potentially game changing well within the next six months."
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