Sound Energy, the European/Mediterranean focused upstream gas company, has said its ability to attract companies such as Shell and Schlumberger as partners illustrates the potential in its portfolio.
Providing an operational update, Sound chief executive James Parsons, said: “The company’s Mediterranean onshore gas strategy is proving robust despite the current oil price environment and changing Italian legislation.
“Our ability to attract top tier companies such as Schlumberger and Shell to work with us in the exploration, appraisal and gas production phases underlines the quality of our portfolio and our people.”
Sound has recently announced signatures with Schlumberger for strategic partnership across Europe and Africa and field management agreement specifically on its Tendarra assets in Morroco. It has also signed a letter of itent with Entrepose Drilling for the supply of a HH300 rig for the first two wells on the licence.
Ground works are expected to be initiated at Tendrara during February.
In Italy, Sound has confirmed the Lombardy Region could given final permission to drill by the end of January and it has increased it success estimation for the Badile prospect following additional well stratigraphic information and follows on from the 5million Euro reduction in drilling cost.
Sound aims start production around the first week of February at Nervesa in Italy following the installation of the pre-fabricated skid units and connection to the national gas export pipeline. Sound has signed a GSA with Shell.
The Italian Parliament has recently revised the offshore permitting legislation. Whilst the precise implications of these legislative changes are unclear, the legislation re-introduces a general ban on drilling activity within 12 nautical miles from the coastline. There have been no material changes to the permitting of onshore assets and therefore the Sound’s near term drill programme remains unaffected.
It continues to plan to drill the Laura appraisal well (which is 4 Km offshore) from the onshore with a long reach deviated well.
Whilst the original well (despite the drilling from the onshore) was planned to be classified as an offshore well, the company now plans to work with the permitting authorities in Italy to change the classification to an on-shore well and therefore avoid any potential negative consequences from the changing offshore legislation.
Parsons added: “Sound Energy’s near term operational programme includes first commercial production at Nervesa, two wells at Tendrara and a first well at Badile. We also expect to announce shortly the continued broadening of our balanced portfolio of exploration, appraisal and production assets across the region.”