Mediterranean-focused explorer Sound Oil has agreed the terms for the purchase of land which will become the initial Badile exploration site.
The company bought the 59,140 square metre plot of industrial land in the Lombardy region of Italy for a total consideration of 1.8million euros ($2.4million).
It has also now ordered a specially designed flanged 15,000psi wellhed from Breda Energia for $508,000, expected for delivery in January next year.
“The company is well advanced with the procurement phase for Badile, and will shortly strategically position itself as landlord of the drill site,” said James Parsons, Sound Oil’s chief executive.
“Badile remains the largest and most strategic asset in Sound Oil’s portfolio with an independently assessed mid case estimate of 178billion standard cubic feet (scf) equivalent, a best estimate NPV10 of approximately $650 million and a High Case NPV10 of more than $2 billion.
“We expect to commence drilling of this potentially game changing well within the next six months.”
In July the company added to its board the managing partner of its institutional investor, Continental Investment Partners’ Marco Fumagalli, following an investment agreement between the two parties in April this year.
The agreement set out and injection of £14million into Sound Oil by Continental, with the funds earmarked for the explorer’s drill programme for 2015, including Italian assets Nervesa and Badile.