Sound Gets Closer to Securing Rig for Badile Drill

Junior oil and gas firm Sound Energy reported Monday that is has taken a step closer to securing a rig for the drilling of its forthcoming Badile exploration well, which is located onshore near Milan in northern Italy.

The company said it has signed a memorandum of understanding with rig supplier Pergemina for the use of the 3,000 HP EMSCO C3 No.29 rig, which is already in Italy. The rig will be available within four months of the signature of the contract – the terms of which are currently under discussion. Sound said the rig is expected to cost a round EUR 500,000 ($545,000) less than previously thought.

Sound added that it also remains confident of a successful conclusion to the Badile permitting process and confirmed that it still expects to be in a position to drill Badile during 2016.

Sound CEO James Parsons commented in a company statement:

"Badile remains the largest and most strategic asset in our portfolio with an independently assessed un-risked best case estimate of 178 [billion standard cubic feet] equivalent.  
 
"Securing the rig and locking in significant additional cost reductions are important steps prior to farming out the asset."