Sound Energy PLC (LON:SOU) is now all set to drill the potentially high impact Badile exploration well this year, following the receipt of the final approval for drilling.
The AIM quoted oil and gas junior told investors that the Italian Ministry of Economic Development (UNMIG) has now given the green light for the project.
Badile is targeting 178bn cubic feet of gas that carries a net present value of 486mln euros – so success would move the dial for Sound. In terms of nearology, the project is well placed. It is next door to ENI’s Gaggiano operation and a short drive from the Villafortuna-Trecate and Malossa fields.
Drilling is currently underway in Morocco, meanwhile, as the group looks to advance the recently acquired Tendrara project.
On Tuesday, Sound Energy announced details of a bond deal which will raise €6mln of new capital and refinance existing debts.
James Parsons, Sound Energy chief executive, highlighted that the new arrangement extends the group’s debt maturity out to 2021.
Sound Energy will receive €6mln of new cash resources which it says will support its growth plans.
At the same time it will repay in the full €7mln Nervesa reserve based lending facility, at a 50% discount to par. It will also now repay in full a £7mln corporate loan from Greenberry, at par.
"I am pleased to announce these heads of terms ahead of the results of our first strategic play at Tendrara, onshore Morocco, and in spite of the difficult sector backdrop,” chief executive James Parsons said on Tuesday.
“The bond demonstrates both the growing maturity of our portfolio and our proactive approach to financial management.”