Italy-focused Sound Oil (LON:SOU) said preparations continue ahead of drilling of its world class Badile prospect early next year as it marked the end to a productive six months.
Key to its aspirations of becoming a Mediterranean-focused mid-cap was raising £14mln that will fund its aspirations, and which saw it bring in a new institutional investor in the form of Continental Investment Partners.
The plan is to sink five wells in two years, starting early in 2015 with a second well on the Nervesa gas discovery and then Badile.
With a net present value of £386mln, the latter has the potential to move the dial.
Sound already produces gas from two wells – Rapagnano and Casa Tiberi – which covered its overheads in Italy.
Results for the six months to June 30 reveal revenues were £490,000 (up from £106,000 at the same point a year ago), while the loss was £1.2mln.
Chairman Simon Davies said: “I have high expectations for Sound Oil, both as a shareholder and as your chairman.
“We have a small expert team, strong assets and an attractive blend of risk and reward with significant potential upside.”