Sound Oil Nervesa Update
Sound Oil, the European / Mediterranean focused upstream oil and gas company has informed investors on the second appraisal well at the onshore Nervesa discovery in Northern Italy and inform investors of an extension to the open offer.
As announced on 20 May 2015 the Company identified gas shows in multiple intervals in the Upper Miocene San Dona Formation. The Company has now successfully perforated and completed seven intervals in the lower section of the reservoir where the most significant gas shows were identified.
Initial gas flows have identified that multiple perforated intervals (between 1929 and 1988 metres depth) are indeed gas bearing, but are however of relatively low permeability.
Clean-up operations are underway and, similar to the first Nervesa well drilled in 2013, are expected to continue for a few days. After the clean up the Company will decide whether to initiate a well test directly or to utilize stimulation techniques beforehand.
Extension to Open Offer:
On 21 May 2015, the Company announced the publication of a circular (the "Circular") in respect of an open offer to eligible shareholders (the "Open Offer"). The latest time and date for receipt of acceptances under the Open Offer, as included in the Circular, is 11:00 a.m. today. The Open Offer has, to date, received a strong response from eligible shareholders.
In light of the two announcements made by Sound Oil this morning, including the Company's signature of a material transaction in Morocco, the Company intends to publish a supplementary circular (the "Supplementary Circular") which will provide eligible shareholders with the details of (i) the updated information; (ii) the extended timetable of principal events of the Open Offer; and (iii) the procedure for applying for Open Offer Shares or withdrawing any application previously made.
A more detailed announcement in relation to the extended Open Offer timetable and the publication of the Supplementary Circular will be made in due course.
