Sound Oil can begin commercial production from the Nervesa well, onshore Italy, following the Italian Ministry of Economic Development’s decision to award the company a production concession for the project.
The construction of production facilities is expected to commence shortly and first commercial gas is anticipated later this year, according to Sound Oil. The award of the production concession is the final step in the permitting process to enable commercial production from the Nervesa well, which was spud in 2Q 2013.
James Parsons, Sound Oil's chief executive officer, commented in a company statement:
"First commercial gas at Nervesa will be a significant milestone for the company and I am pleased to report that we have now finalized the associated permitting. The Nervesa discovery is approximately 262 feet from the high and low pressure gas distribution networks. Similar to the company's other existing onshore discoveries, Nervesa benefits from very strong gas prices. A gas sales agreement with a long term partner is expected to be signed shortly."
Nervesa is a 21 billion standard cubic feet field discovered by ENI in 1985. Sound Oil spud a second well at Nervesa on April 23, 2015, although the company decided to abandon it after it was unable to secure a stabilized flow rate.
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