Sound Oil, the European / Mediterranean focused upstream oil and gas company, is pleased to announce the signature of two gas sales contracts and developments in relation to the Badile drill site land acquisition first announced by the Company on 7 August 2014. These operational contracts span three of the Company's assets.
Rapagnano Gas Sales Contract
The Company has entered into a 12 month gas sales agreement for the Rapagnano gas field with Steca Energia Srl (the "Rapagnano Gas Sales Agreement"). This agreement, which runs to September 2015, includes no "take or pay" component and is based on a variable market price. The Company estimates the Rapagnano Gas Sales Agreement will deliver an average price of Euro 0.267 per Scm (US$9.8/Mscf) over its term.
Casa Tiberi Gas Sales Contract
A 12 month Gas Sales Agreement in respect of the Casa Tiberi gas field has been signed with Prometeo SpA. Like the Rapagnano Gas Sales Agreement, this agreement also includes no "take or pay" provision however provides for a fixed price of Euro 0.269 per Scm (US$9.9/Mscf) until September 2015.
Badile Drill Site Land Acquisition
The Company is also pleased to announce that it has now contracted for the purchase of a 59,140 square metre plot of industrial land in the Lombardy region of Italy for a total consideration of Euro 1.8 million (excluding VAT). The terms of this land acquisition were first announced by the Company on 7 August 2014. The land will host the drill site for the initial Badile exploration well and for all other production wells required to exploit the discovery.
