Sound Energy PLC (LON:SOU) is making headway in Italy where its drilling programme at Badile, near Milan, has reached its third casing point at a measured depth of 2,614 metres.
The Morocco and Italy focused gas specialist’s next stop is the fourth casing point at 3,490 metres. The well will go down to a total depth of 4,445 metres.
To date the company has scored significant success at Tendrara, in Morocco, where it has discovered significant accumulations of potentially commercial gas.
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However, Sound’s Italian assets were the foundation stone on which the company was built and it has two producing wells – although their output is modest.
Badile could move the dial for an independent assessment suggests the target could be host to around 178bn standard cubic feet of gas with a net present value of £400mln.
Significant upside
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.
Drilling and logging operations are expected to take 100 days and assuming gas is found, it will take a further 25 days for completion and testing.
The shares, up 330% in the last year, succumbed to some mild profit-taking as they fell 2%.
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