Southern Europe and Mediterranean-focused Sound Oil has decided to abandon the second appraisal well on its Nervesa discovery in northern Italy pending a possible sidetrack at the well, the junior energy firm reported Tuesday.
Sound said that despite the confirmed presence of gas and the completion of re-perforation and stimulation operations in the lower section of the well's target reservoir, the company had been unable to secure a stabilized flow rate. Consequently, Sound has concluded that the lower section of the target reservoir is insufficiently permeable to flow gas.
With no material gas shows in the upper section of the target reservoir, Sound has decided to abandon the well – although the firm also plans to retain the top-hole facilities at the site in anticipation of a future sidetrack.
Sound said that it will now focus on achieving first gas at the first Nervesa well while also preparing for its first well on its recently-acquired interest in Morocco.
Sound CEO James Parsons commented in a company statement that he was "disappointed" that the level of permeability encountered in the well was insufficient but that the company remains "very well positioned with a diverse and well balanced portfolio of assets in Italy and Morocco and a strong cash balance".
Parsons also noted:
"We are rapidly approaching commercial production at the first Nervesa well, the drilling of the first appraisal well in Morocco and the permitting and farm out of the Badile exploration well. I therefore see this well result as a frustrating but relatively minor set-back."
Meanwhile, Sound also announced Tuesday the approval of the Environment Impact Assessment for the award of the D503-BR-CS permit, which covers the firm's Dora gas asset and the Dalla exploration prospect in the central Adriatic. The award of the permit is expected to follow, the firm added.
WHAT DO YOU THINK?
Click on the button below to add a comment.
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
More from this Author
Most Popular Articles
From the Career Center
Jobs that may interest you