Sound Energy is one step closer to unlocking its “largest and most strategic asset”.
The firm signed a Memorandum of Understanding with Pergemina for a rig to drill the firm’s Badile exploration well in Italy.
The confirmation is expected to knock EUR500,000 off Sound’s drill costs.
Chief executive James Parsons said: “Badile remains the largest and most strategic asset in our portfolio with an independently assessed unrisked best case estimate of 178 Bscf equivalent.
“Securing the rig and locking in significant additional cost reductions are important steps prior to farming out the asset.”
Sound will use Pergemina’s 3000 HP EMSCO C3 No.29 rig, which is already in Italy.
Sound will pay 23% of the service charges through the issue of new ordinary shares with a value of approximately EUR1million.