Mediterranean-focused Sound Oil has signed a letter of intent (LOI) for a second well at the Nervesa discovery in Northern Italy.
A first appraisal well was drilled at the site on the Carita permit in summer 2013.
Sound now plans to drill a second appraisal well, costing approximately £4.1million, following full approval from the Italian government.
The firm said it expects to spud the second well during the first half of the year, to appraise the southern limb of the Nervesa discovery.
Following a tender process, Sound has signed the LOI with Hydro Drilling International to lease a HH220 hydraulic drilling rig for the well.
The rig contract is expected to be signed in the first quarter of this year, and included in the LOI is the option for Sound to use the same rig for either a third appraisal well on the Nervesa discovery or for a new exploration ell in the Carita Permit.
“Nervesa is a 24Bscf gas discovery which was originally discovered by ENI in 1985 and was drilled successfully by Sound Oil in the summer of 2013,” said chief executive James Parsons.
He said the discovery had an estimated net value worth around £40.2million, which are expected to provide material cash flows to the company from 2015.
“This second appraisal well is a relatively shallow well with a minimal deviation, addressing the southern area of the discovery and targeting a bottom hole location up-dip from the original ENI well,” added Mr Parsons.
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