Parsons: Sound Oil progress hit by Italian approval processes

LONDON (ShareCast) - AIM-listed upstream oil and gas company Sound Oil has admitted that operations at two of its plants are progressing slower than the company would like as a result of issues relating to the Italian government´s approval processes.

In a portfolio update issued on Friday morning, the company stated that the company had not yet received final written authorisation from UNMIG (the Italian Department for Energy) for cellar excavation at its Nervesa Discovery in the Veneto Region of Italy.

The company stated that this had not yet affected operations on site as operations to prepare the site remained underway.

Meanwhile, the company stated that an unexpected request for additional documentation had come through from UNMIG with regard to its Rapagnano Field operations. Following the documentation request, Sound Oil said it was targeting successful commissioning by the end of February.

James Parsons, Chief Executive Officer of Sound Oil, commented: "The company is making good progress on its core strategic objectives, including potentially accelerating production from the Laura discovery.

"Whilst Italian approval processes are causing operations at Nervesa and Rapagnano to progress slower than we would have liked, both are moving forward and our focus remains on delivering a successful well and commercial first gas for our shareholders."

Sound Oil's share price was down 2.63% to 9.25p at 09:33 on Friday.

MF