Sound Energy PLC Badile Cost Reduction (6919G)
November 24 2015 - 1:01AM
UK Regulatory
TIDMSOU
RNS Number : 6919G
Sound Energy PLC
24 November 2015
24 November 2015
Sound Energy plc
("Sound Energy" or the "Company)
Badile Cost Reduction
Sound Energy, the Mediterranean focused upstream oil and gas
company, is pleased to announce a significant reduction in the
estimated cost of the forthcoming Badile exploration well.
The Company has now completed a selective re-tendering of the
Badile well programme with a view to capturing cost reductions
resulting from the increased availability of rigs and other
services in the current low oil price environment. This
re-tendering has secured an immediate Euro 5 million reduction in
the expected cost of the well, reducing the well from a total cost
of Euro 30 million (including completion and testing) to Euro 25
million on a 100% basis.
The Company confirms that it still expects to receive final
authorisation to drill the Badile exploration well at the end of
2015 or early in 2016 and that it continues with its efforts to
identify and negotiate a farm in partner.
James Parsons, Sound Energy's Chief Executive Officer,
commented:
"Badile remains the largest and most strategic asset in our
portfolio with an independently assessed mid case estimate of 178
Bscf equivalent.
The Company, with its Mediterranean onshore gas strategy, has
remained largely sheltered from current low oil prices and is now
also benefiting from reductions to its capital costs as a result of
increased availability of equipment and service providers.
Securing this significant structural cost reduction is an
important step prior to farming out the asset."
For further information please contact:
Vigo Communications - PR Adviser Tel: +44 (0)20 7016 9573
Patrick d'Ancona
Chris McMahon
---------------------------------------- -----------------------------
Sound Energy j.parsons@soundenergyplc.com
James Parsons, Chief Executive Officer
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Smith & Williamson - Nominated Adviser Tel: +44 (0)20 7131 4000
Azhic Basirov
David Jones
Ben Jeynes
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Cantor Fitzgerald Europe - Broker Tel: +44 (0)20 7894 8896
Sarah Wharry
David Porter
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Bscf means billion standard cubic feet of gas; Best Estimate
refers to finding a given volume consistent with SPE (The Society
of Petroleum Engineers) guidelines on Prospective Resources.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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