LONDON (ShareCast) - Sound Oil, a Europe and Mediterranean focused upstream oil and gas company, has signed a land lease agreement in northern Italy.

The contract covers 18,300 square metres of plan for a period of two years at the Nervesa discovery on the Carita permit, where Sound plans to drill a second well to appraise part of the discovery once it has obtained the necessary approvals.

James Parsons, Sound Oil's Chief Executive Officer, said: "Preparations for the second appraisal well on the 24bn square cubic feet Nervesa gas discovery continue.

"The discovery has an estimated NPV10 of circa $66m and is expected to provide material cash flows to the company from 2015."

The group plans to drill the well in the first half of 2014.

NR

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