Mediterranean-focused explorer Sound Oil has signed an unbinding heads of terms over a farm-out of its Carita licence with Niche Group.
The oil and gas investor will acquire a 27.5% interest in the Northern Italy asset which includes the Nervesa discovery, in return for covering the full cost of developing a second well in the licence later this year, at an estimated 6million euros.
The Nervesa gas field, discovered in 1985, holds an estimated P50 contingent resources (50% confidence level of recovery)of 20.7billion standard cubic feet.
The companies are expected to enter a binding agreement in the upcoming months.
“We are pleased to confirm that we have agreed heads of terms for a farm out on Sound Oil’s flagship asset, Nervesa,” said James Parsons, chief executive of Sound Oil.
“This fully funds the next well addressing the southern part of the structure, enables us to achieve first gas on Nervesa without significant further capital and preserves the recently announced £14 million funding injection for our world class Badile prospect and material Laura discovery.
“This farm out, together with the introduction of our new cornerstone investor announced last week, positions Sound Oil as a substantively fully funded vehicle.
“The executive team will now turn its attention to the farm out of Badile.”
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