Sound Oil, the Mediterranean focused upstream gas company, made a first-half pretax loss of £3.89million compared with a 2014 loss of £2.05million.
The company said it expects to begin commercial production from the Casa Tonetto production concession, which includes the Nervesa discovery, in Italy, before year end. This follows the signature of a gas sales agreement with Shell.
Sound has also entered a farm-in agreement to acquire a 55% net working interest and operatorship of the Tendrara licence, onshore Morocco.
The company has unaudited cash balances of £17.5million.
Chairman Simon Davies, said: “Despite a disappointing second well on the Nervesa discovery over the summer, the company is positioned for commercial production from the first well, underpinned by strong gas prices which remain resilient to the recent oil price decline, by the end of the year. The company is also finalising preparations for our first well in Morocco.”
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