Sound Oil impresses investors with Nervesa progress

Italy-focused Sound Oil (SOU) has successfully drilled the Nervesa appraisal well to a casing point at 1,389 metres.

Operations are now in progress to install the casing. The well is now approximately 210 metres above its first reservoir objective.

Investor view

"Shouldn't take long [to drill the remaining 210 metres]," stated Interactive Investor discussion board user 'dronaig'. "But hitting the gas could be the tricky bit.

"My bet is on a fat juicy RNS end of next week [or week after] to say payzone encountered. I think [the share price] deserves a nice shift upwards to 11 or 12p prior to next RNS."

But 'Pharma Brown' pointed out that at 1,389 metres, the oil exploration company still had 661 metres left to drill to reach its published target depth of 2,050 metres.

"I suspect the pre-drill published figure is deepest-case. What they need to find is the bottom of the gas reservoir and into the top of whatever non-reservoir geology lies beneath, to prove reservoir-rock ('pay') thickness," the user said. "At 41 metres per day once casing job is complete, that is about five days to reach the top of the reservoir. Could be 16 days to reach 2,050 metres if going that far.

"I anticipate another update RNS towards end of next week, not necessarily target depth."

102318

Interactive Investor is the web's biggest community for discussing UK investments and companies. Compare strategies, share knowledge and validate decisions (or not) on our discussion boards.