Sound Energy has capitalised on depressed market conditions to renegotiate and reduce its Badile wells costs by EUR5million.
The well, which is expected to get final approval at the end of the year, will now cost EUR25million.
Chief executive James Parsons said: “Badile remains the largest and most strategic asset in our portfolio with an independently assessed mid case estimate of 178 Bscf equivalent.
“The company, with its Mediterranean onshore gas strategy, has remained largely sheltered from current low oil prices and is now also benefiting from reductions to its capital costs as a result of increased availability of equipment and service providers.
“Securing this significant structural cost reduction is an important step prior to farming out the asset.”