StockMarketWire.com - Sound Oil [LON:SOU] has revised its near term drill programme for the Badile prospect.

The aim is to:

* Increase the upside exposure for shareholders, balancing risk and reward.

* Accelerating cash flow from the Nervesa discovery.

* Preserving cash for the Company's most material projects.

* Capturing rig cost synergies and eliminating rig non availability risk.

The revisions to the drill programme include:

* Drilling of the Badile prospect (23MMbo, US$266m NPV10) as originally scheduled in 2014, now with 100% equity position and Sound Oil operatorship.

* Drilling of the Zibido prospect (16MMbo; US$185m NPV10), a second material exploration prospect in Po Valley, Northern Italy.

* Drilling of a second well addressing the Northern extension of the Nervesa discovery in Q4 2013 (21Bscf, US$57 million NPV10) with a view to accelerating production and cash flow from this flagship asset. This well would likely be funded with a debt structure and remains contingent on a successful initial Nervesa appraisal well.

* Confirmation of the drilling of the Laura discovery (30Bscf, US$86m NPV10) as originally scheduled in Q4 2014 using a long reach deviated well from onshore. It is the company's intention to apply directly for a concession award to accelerate cash flows. The permit for Laura is expected to be awarded during H1 2013.

* Contracting of one 2,000 to 3,000 horsepower electric rig on an exclusive basis for a period of 18 months commencing Q1 2014 to cover Badile, Laura and Zibido. This ensures rig availability and secures significant cost efficiencies.

* Deferral of the Strombone appraisal well, thereby freeing up an operational window for the second Nervesa well in Q3/Q4 2013 and freeing up US$9m in cash to fund the increased equity stake in Badile.

* Potential inclusion of Casa Tiberi field development in the Q3 2014 operational window. The concession for Casa Tiberi is expected to be awarded in Q2 2013.

Chief executive James Parsons said: "This strategic revision to the drill programme is a positive step and focuses our financial and human resources on game-changing drills whilst also capturing rig cost synergies.

"The programme commences with Nervesa, our flagship asset, which is expected to spud in April this year. Assuming a successful Nervesa appraisal well, a second well will be drilled later this year on the Northern extension to exploit fully the multiple reservoir units and accelerate cash flows. During the next twenty-four months it is our intention to drill two material exploration prospects, Badile and Zibido, each with the potential to significantly accelerate our growth.

"The company will also develop the Laura discovery which has the potential to provide early material cash flows to the company.

"Sound Oil continues with the intention to drill two material wells every year however the speed and scale of change will now be much greater."

The sector's biggest fallers were Petroneft Resources [LON:PTR], Matra Petroleum [LON:MTA] and Petrel Resources [LON:PET] while the top risers were Independent Resources [LON:IRG] and Leni Gas & Oil [LON:LGO].




At 3:57pm:

[LON:IRG] share price was +0.76p at 10.38p

[LON:LGO] share price was +0.07p at 1.06p

[LON:MTA] Martin International share price was -0.07p at 1.28p

[LON:PTR] share price was -0.37p at 4.06p

[LON:SOU] share price was +0.01p at 7.13p



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