Analyst Interview – Sound Oil

Sound Oil is an AIM-listed exploration and production company with majority working interests in 18 licences, all located in Italy. Sound Oil has had considerable success in building the beginnings of an Italy-focused upstream portfolio from these assets, with two fields in production: Rapagnano and Casa Tiberi; three fields scheduled for further appraisal: Nervesa, Laura and Santa Maria Goretti; and two sizeable, drill-ready exploration prospects: Badile and Zibido.

Now that Sound has attracted a strategic investor in 2014 (Continental Investment Partners), we foresee a period of high activity, with a rejuvenated balance sheet and five material exploration and appraisal prospects scheduled for drilling in the coming 18-24 months. Of these, exploration prospect Badile (scheduled to spud in late 2014 pending a farm-out agreement) has company-maker potential, while continued appraisal of existing discoveries Nervesa, Laura and SMG offers lower-risk incremental value to shareholders.