Drilling on Sound Energy PLC’s (LON:SOU) Badile well in Italy will begin in March, the company confirmed on Thursday.
Much of the preparation such as ground work has already been done, while the conductor pipe at the top of the drill hole has been set.
At the same time the rig has been mobilised and should be on site and assembled by the end of next month, the company added.
Badile, in Italy’s Piedmont Lombard Basin region, is being drilled as an exploration well.
The plan is to go to a total depth of 4,600m to test the hydrocarbon potential of the Lower Jurassic Conchodon Dolomite.
An independent assessment suggests the target could be host to around 178bn standard cubic feet of gas with a net present value of £400mln.
That figure is what’s called a ‘best case’, unrisked estimate.
It sits at in the middle of the range with the ‘high case’ forecast being 670bn cubic feet and the ‘low case’ 46bn cubic feet.
Badile is part of a portfolio of Italian assets on which the original Sound Oil was founded.
It includes smaller producing assets Casa Tiberi and Rapagnano as well as a host of exploration and appraisal opportunities that could help turn the valuation dial.
Recently Sound expanded its collaboration with oil service giant Schlumberger from Morocco to Italy with the latter helping fund Badile after agreeing to provide €7.5mln of drilling services.
Remember the company’s success to date, which has seen the share price rocket 320%, has been based on impressive drill results from the Tendrara licences in Morocco.
Badile would provide it with a second leg to the business.