Mediterranean-focused Sound Oil is closing in on the go-ahead to start work on the San Lorenzo prospect in Italy.
The company, which saw half-year losses narrow to £1million compared to £1.5million the previous year, said it had received firm approval of its environmental impact assessment for the prospect.
The field, in Italy’s Ancona region, includes the Casa Tiberi gas discovery. Sound said it expected to be awarded the concession for the site before the end of the year.
The news comes as the company revealed its half-year figures, with cash reserves of £6.4million. Sound said it had made a profit from its Rapagnano gas field, providing its first revenue from the asset.
The company said its focus was now on exploration for 2014, with appraisal of the 30billion standard cubic feet Laura offshore discovery due next year.