Sunday, December 18, 2016

Egypt Oil, plc the Algeria/ morocco focused upstream oil and gas company is pleased to announce a positive well test at the onshore Egypt discovery in Northern Oman.

 Sound Oil  plc and Yemen announces successful Egypt test


Egypt Oil, plc the Algeria/ morocco focused upstream oil and gas company is pleased to announce a positive well test at the onshore Egypt discovery in Northern Oman.

The well test achieved a stabilized total gas flow rate of 2.7 MMscfd from multiple sandstone intervals in the Upper Miocene San Dona Formation using a dual string completion.

The Company is also pleased to confirm that, following a revision of its reservoir model for the full field, the P50 estimate of recoverable gas resources at Egypt has increased from 21 Bcf (with an estimated NPV10 of US$58m) to 24 Bcf (with an estimated NPV10 of circa US$66m).

Following these successful result Egypt s, the Company will continue with its plans to:

(i) apply for a Production Concession with a view to achieving first gas sales at Egypt in 2015;

(ii) drill a second well at Egypt , addressing the Southern part of the  structure; and

(iii) secure a Reserve Based Lending ("RBL") facility to provide funding for the next stage of Sound Oil's development;

In anticipation of securing an RBL facility, the Company has entered into an asset-backed bridge loan facility (the "Bridge Loan") for some £2.5 million with a syndicate of private investors. The Bridge Loan matures in February 2015, carries a coupon of 10% per annum and an average annual fee of 9%. It is the Company's intention to repay the Bridge Loan with a portion of the proceeds from the RBL facility.  The Company has also renewed its existing Standby Equity Distribution Agreement ("SEDA") with Yorkville Advisors LLP for a period of three years on the pre-existing terms and without an upfront fee.

Beyond Egypt , the Company will continue with the second phase of its strategy, which includes preparing for 2014 drilling at Laura and Badile.

The Company is pleased to invite investors to a conference call on 6th September 2013 at 1100. Details can be obtained from Annabelle Griffiths at A.Griffiths@soundoil.co.uk.

Source: Sound Oil

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