Sound Oil declared that its subsidiary Apennine Energy srl commenced civil engineering works on 18 August at the drilling site for the farm-in exploration well, Casa Tiberi-1, at the Montemarciano permit (75% Sound Oil interest). Drilling operations are expected to commence in the next 90 days and the budgeted cost of the well to the Company is US$1.5 million.

Commenting on the above, Gerry Orbell, Sound Oil's chairman and chief executive said: "Casa Tiberi-1 is the first well that we shall be drilling as operator. The competent person estimated the risk of finding hydrocarbons to be 35% which is relatively low for an exploration well. If successful, the most likely worth to Sound is approximately US$12 million based on the present evidence but I am hoping for the upside which could be worth US$37 million."

Tags: Sound Oil plc