Sound Oil has signed two gas sales contracts and developments in relation to the Badile drill site land acquisition first announced by the Company on 7 August 2014. These operational contracts span three of the Company's assets.
Rapagnano Gas Sales Contract
The Company has entered into a 12 month gas sales agreement for the Rapagnano gas field with Steca Energia Srl (the "Rapagnano Gas Sales Agreement"). This agreement, which runs to September 2015, includes no "take or pay" component and is based on a variable market price. The Company estimates the Rapagnano Gas Sales Agreement will deliver an average price of Euro 0.267 per Scm (US$9.8/Mscf) over its term.