Sound Energy signs MoU to secure rig for Badile exploration well in Italy

Sound Energy has signed a memorandum of understanding (MOU) with Pergemina for the use of the 3,000hp EMSCO C3 No29 rig for the forthcoming Badile exploration well in Italy.

The rig will be available to Sound Energy within four months of signing the contract.

Sound Energy said that the terms of the rig will result in a further €0.5m reduction to the previously announced expected drill costs.

The company plans to conclude the Badile well permitting, and confirms the drilling of the Badile well during 2016.

Sound Energy CEO James Parsons said: "Badile remains the largest and most strategic asset in our portfolio with an independently assessed unrisked best case estimate of 178 billion standard cubic feet equivalent.

"Securing the rig and locking in significant additional cost reductions are important steps prior to farming out the asset."

In November 2015, the company announced a reduction in the estimated cost of the Badile exploration well.

After completing a re-tendering of the Badile well programme, an immediate €5m reduction was secured by the company in the expected cost of the well.

The Badile permit is situated in the Piedmont Lombard Basin in northern Italy and is next to Eni’s Gaggiano oil field.

It also located a short distance from the Villafortuna-Trecate and Malossa oil fields, with total proven recoverable reserves of over 400 million barrels of oil equivalent.

Initially, Eni held the permit area in the exclusive zone until 2004, and a total of 460 line kilometre 2D and 238km² 3D seismic were acquired between 1974 and 1990.