StockMarketWire.com - Sound Oil has completed its gas test on the Casa Tiberi-1 well at Ancona, Italy.

But it has been advised that the Cataka-1 exploration well in Indonesia has encountered unstable formation in the top hole section, necessitating a sidetrack.

The company said the Casa Tiberi-1 well flowed gas with a final rate of 37,850 scmd on a 5/16" choke (approximately 1.3 MMscfd).

The data from the test will be studied in detail to assess the production potential of the well.

The good gas quality and the nearby presence of a low pressure gas network provide an opportunity for a commercial fast-track development of this discovery.

Sound Oil also said it had been advised by the operator that the Cataka-1 exploration well on the Citarum production sharing contract in Java had encountered unstable formation in the top hole section, necessitating a sidetrack.

The sidetrack hole has already been drilled to the casing depth at 1,397 feet and the 13 3/8ths casing set and cemented.

Now that this part of the unstable formation has been cased off, the well will drill ahead to the objective at 6,995 feet as originally planned.

It is estimated that at least two additional weeks will be needed to complete operations beyond the planned 21 day programme.

Chairman and chief executive Gerry Orbell said: "The planned gas test at Casa Tiberi is part of our evaluation to determine the commercial viability of this discovery.

"The results so far are encouraging and we will know more in the coming weeks as they are fully integrated with our other work.

"In Java, Pan Orient has now set the casing over much of the problem interval that was encountered in the top hole.

"We expect the operator will be able to drill ahead to test the hydrocarbon potential of this exciting exploration prospect."



At 3:54pm: (LON:SOU) share price was +0.06p at 1.73p


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