Global Leader in International Production Industry News

posted in:

Sound Oil plc announces Rapagnano gas sales agreement

Friday, Nov 30, 2012

Sound Oil, the Italian focused upstream oil and gas company, is pleased to announce a Gas Sales Agreement ("GSA") with Steca Energia Srl ("Steca").

As previously announced, the Company expects to commence production from the Rapagnano field shortly, targeting an estimated 1.3 Bscf (P50) over a thirteen year field life. The Company will directly connect the well to the local low pressure grid, operated by Steca (a local gas distributor), who will purchase the gas.

The key terms of the GSA include:

· Gas priced initially at �?�0.316 per Scm (US$11.2 / Mscf), varying quarterly based on a basket of commodity prices (Diesel, Brent and Fuel Oil as published in Platts) with an estimated average 2013 price of �?�0.320 per Scm.

· Optionality for Sound Oil to increase production during the winter period and benefit from a �?�0.16 per Scm price increase.

· No penalties for Sound Oil in the case of reduced or a period of zero production.

· A guarantee deposit from Steca covering one month of production.

· Contract conditional on the concession award, expected shortly.

James Parsons, Sound Oil's Chief Executive Officer, commented:

"The Company continues on track to achieve the strategic milestone of first gas, having now secured the gas sales contract.

This initial revenue stream will enable Sound Oil to cover a large portion of its overhead costs in Italy."

Source: Sound Oil plc

To access over 3,000 of the latest oil projects from across the world visit Projects OGP for free trial today

posted in:

Other Production News

Drilling and production update 18-04-2014
Dejour sees 60% increase in net production at Woodrush 16-04-2014
Oil and gas drilling and production brought to life 15-04-2014
Platform P-20 resumes production 09-04-2014
Gastar Exploration announces Marcellus shale production temporarily interrupted due to rupture of third party-operated pipeline 09-04-2014
Petrobras starts-up third well at Sapinhoá field and registers a new monthly production record in the pre-salt 07-04-2014
Production March 2014 07-04-2014
New Zealand Energy reports 2013 year-end reserves and production update 03-04-2014
Drilling permit for well 7324/7-2 in production licence 537 03-04-2014
CANADIAN NATURAL RESOURCES LIMITED COMPLETES THE ACQUISITION OF CERTAIN CANADIAN ASSETS OF DEVON CANADA 02-04-2014