LONDON (ShareCast) - Italian oil & gas explorer Sound Oil is staying on the lookout for a partner for an exploration prospect in Italy despite receiving an offer.

Sound Oil said it was marketing its Badile prospect to potential farm-in partners, having already received but not accepted an earlier offer from an unidentified large Italian oil company. It expects to drill Badile in late 2014 and early 2015.

Last month, the group signed a provisional deal with Niche Group to farm-down its onshore Carita licence in northern Italy, which includes its flagship Nervesa discovery.

It has also agreed a £14m funding deal with Continental Investment Partners to finance drilling in the next year, including Nervesa and Badile.

Sound hopes to start producing gas at Nervesa in the middle of next year.

"This will represent a step-change in the revenue generation of the group and will provide crucial cash flow to develop further projects," Sound said.

Shares in Sound fell 0.2p or 2.1% to 8.1p at 16:57 in London.

PW

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