Sound Hits Gas with Nervesa Well
Italy-focused Sound Oil reported Wednesday that it has made a gas discovery at its Nervesa well, onshore Italy.
After mud log gas shows were recorded while drilling across several sandstone intervals within the target zone of the Miocene San Dona formation, Sound said it has now completed logging operations and is pleased to confirm the identification of 1,562 feet of gross pay and 785 feet of gross reservoir, with 151 feet of net gas pay in 13 separate zones.
Sound said that planning for completion operations has now begun with a view to providing the necessary well test data for certification by the Italian Ministry of Economic Development.
Sound added that it will make a further announcement confirming the estimated quantity of commercial gas and expected cash flows once it has fully reviewed the well test results. Following completion of testing, Sound plans to apply for a production concession ahead of achieving first gas sales in 2015.
Sound CEO James Parsons commented in a company statement:
"In October 2012 we set a strategy of significant growth through the drilling of four material wells in Italy within 24 months. Nervesa is the first of those drills and has confirmed a gas discovery. Whilst a comprehensive technical review is now required to confirm the size of the discovery, it appears sufficiently large to deliver important cash flows and provide funding alternatives for the 2014 drill program.
"With this well the company has also demonstrated to investors, the Italian authorities and the important local Italian communities that it can secure permits in Italy and successfully execute complex drill program safely.
"At Nervesa we will now focus on the completion and testing of this well, the design and approval of a second well addressing the structure and the securing of the production concession."
Parsons added that the company is now preparing for the Laura (30 billion standard cubic feet) and Badile (175 billion standard cubic feet) wells.
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