Sound Oil PLC Nervesa Update & Open Offer Supplementary Circular (2337Q)
16 June 2015 - 4:00PM
UK Regulatory
TIDMSOU
RNS Number : 2337Q
Sound Oil PLC
16 June 2015
16 June 2015
Sound Oil plc
("Sound Oil" or the "Company")
Nervesa Update and Open Offer Supplementary Circular
Sound Oil, the European / Mediterranean focused upstream oil and
gas company announces that it has decided to abandon the second
appraisal well pending a possible sidetrack at its onshore Nervesa
discovery.
Despite the confirmed presence of gas and the completion of
reperforation and stimulation operations in the lower section of
the target reservoir, the Company has been unable to secure a
stabilised flow rate. The Company has therefore concluded that the
lower section of the target reservoir is insufficiently permeable
to flow gas. With no material gas shows in the upper section of the
target reservoir, the Company has decided to abandon the well. It
is the Company's intention, subject to permitting, to retain the
top-hole facilities at site in anticipation of a future
sidetrack.
The Company will now turn its attention towards:
-- achieving first gas at the first Nervesa well, where
construction of production facilities is expected to commence
shortly; and
-- preparing for the first well in respect of its newly acquired interest in Morocco.
The Company invites shareholders to a conference call at 09:00
on Friday 19 June 2015. For details please contact
h.chapman@soundoil.co.uk.
James Parsons, Sound Oil's Chief Executive Officer,
commented:
"I am disappointed to report that, whilst we found gas in the
lower portion of the reservoir, the level of permeability
encountered was insufficient, despite reperforation and stimulation
operations, to establish a flow. We will be evaluating the result
of this well to assess the remaining prospectivity in the licence
area and consider a sidetrack.
"The Company remains very well positioned with a diverse and
well balanced portfolio of assets in Italy and Morocco and a strong
cash balance (over Euro 26 million on completion, later this month,
of the second tranche of the placing first announced by the Company
on 28 April 2015).
"We are rapidly approaching commercial production at the first
Nervesa well, the drilling of the first appraisal well in Morocco
and the permitting and farm out of the Badile exploration well. I
therefore see this well result as a frustrating but relatively
minor set-back.
"The Sound Oil team and I remain committed to building a mid cap
Mediterranean gas company."
Publication of Supplementary Circular and Extension to Open
Offer
On 21 May 2015, the Company announced the publication of a
circular (the "Circular") in respect of an open offer to eligible
shareholders (the "Open Offer"). The Open Offer has, to date,
received a strong response from eligible shareholders.
The Company announces that it will shortly be posting a
supplementary circular to Eligible Shareholders in respect of the
Open Offer (the "Supplementary Circular"). Details of the Open
Offer, which was first announced by the Company on 18 May 2015,
were included in the Circular.
The Circular and the Supplementary Circular will be available
from the Company's website at www.soundoil.co.uk. Capitalised terms
in this announcement have the meanings given to them in the
Circular, except where the context requires otherwise.
In light of the new information contained, inter alia, above,
Sound Oil is now extending the timetable for acceptances (and all
other relevant dates) under the Open Offer.
The purpose of the Supplementary Circular is to (i) provide
Eligible Shareholders with the updated information contained in
this announcement and in relation to entry by the Company into the
Tendrara licence farm in agreement (announced on 8 May); (ii)
provide details of an extended timetable of principal events of the
Open Offer; and (iii) to provide Eligible Shareholders with details
of the procedure for applying for Open Offer Shares or withdrawing
any application made for Open Offer Shares prior to the date of the
Supplementary Circular, should they wish to do so based on the
updated information contained within the Announcement.
Open Offer Timetable
In order to provide Eligible Shareholders with sufficient time
to consider the additional information, the Company has decided to
extend the Open Offer timetable, such that the last time and date
for receipt of completed Application Forms and payment in full
under the Open Offer and settlement of relevant CREST instructions
(as appropriate) be extended to 11.00 a.m. on 23 June 2015. As a
result, the revised expected timetable of the remaining principal
Open Offer events is as follows.
Recommended latest time for requesting 4.30 p.m. on 17 June
withdrawal of Open Offer Entitlements 2015
and Excess CREST Open Offer Entitlements
from CREST
------------------------------------------ ----------------------
Latest time for depositing Open Offer 3.00 p.m. on 18 June
and Excess Open Offer Entitlements 2015
into CREST
------------------------------------------ ----------------------
Latest time for splitting of Application 3.00 p.m. on 19 June
Forms (to satisfy bona fide market 2015
claims only)
------------------------------------------ ----------------------
Latest time and date for withdrawing 11.00 a.m. on 23 June
(in whole or in part) Open Offer 2015
acceptances made prior to the date
of the Supplementary Circular
------------------------------------------ ----------------------
Latest time and date for receipt 11.00 a.m. on 23 June
of completed Application Forms and 2015
payment in full under the Open Offer
and settlement of relevant CREST
instructions (as appropriate)
------------------------------------------ ----------------------
Expected date of announcement of on or by 24 June 2015
results of the Open Offer through
an RIS
------------------------------------------ ----------------------
Expected time and date for Admission 8.00 a.m. on 25 June
and commencement in dealings in the 2015
Open Offer Shares on AIM
------------------------------------------ ----------------------
Expected date for crediting of the 25 June 2015
Open Offer Shares and Open Offer
Warrants in uncertificated form to
CREST accounts
------------------------------------------ ----------------------
Expected date of dispatch of definitive 6 July 2015
share/warrant certificates for the
Open Offer Shares and Open Offer
Warrants
------------------------------------------ ----------------------
References to times in this announcement are to London time
(unless otherwise stated). The dates and timing of the events in
the above timetable and in the rest of the announcement are
indicative only and may be subject to change at the absolute
discretion of the Company. If any of the above times or dates
should change, the details of the revised times and/or dates will
be notified to AIM and, where appropriate, to Shareholders.
For further information please contact:
Sound Oil j.parsons@soundoil.co.uk
James Parsons, Chief Executive
Officer
Vigo Communications - PR Adviser Tel: +44 (0)20 7016 9573
Patrick d'Ancona
Chris McMahon
Smith & Williamson - Nominated Tel: +44 (0)20 7131 4000
Adviser
Azhic Basirov
David Jones
Ben Jeynes
Peel Hunt -Broker Tel: +44 (0)20 7418 8900
Richard Crichton
Charles Batten
The information contained in this announcement has been reviewed
by Sound Oil's Italian Managing Director, Luca Madeddu, a qualified
petroleum geologist.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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