Company Information for Sound Oil PLC

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Company Statement

Sound Oil plc is an independent oil and gas exploration company, incorporated in England and Wales, listed on the AIM market of the London Stock Exchange. Our strategy is to add significant value from a portfolio of exploration and production assets.

Our current focus is on Indonesia where we hold active exploration and development licences and we aim to grow our portfolio with selective additions in southeast Asia and other regions of the world.

Operations and Technology

Sound Oil joined London’s Alternative Investment Market in June 2005, raising £11 million. In June 2006, Sound finalised the acquisition of Indonesian private company Mitra Energia in a reverse takeover worth £16.1 million. The deal gave Sound gained a 34.99 per cent stake in the Bangkanai Block on Kalimantan and 20 per cent of the Citarum Block on Java, assets that provide one gas development project and an extensive exploration portfolio.

The vast Bangkanai Block is equivalent in size to 36 North Sea blocks and is home to the Kerendan gas field. The field, first discovered in the 1980s, will be developed to supply gas to a local, new-build power plant operated by Medco Power. The development plan includes re-entering existing wells and drilling up to five new development wells with a view to supply up to 20 million cubic feet of gas per day over a period of 20 years. The company is targeting first gas sales in 2011.

There is also exploration potential on the block, with a new 2D survey showing deeper prospective horizons below the existing Kerendan reservoir. Seismic will be acquired in November 2008 to firm up the Jupoi prospect ahead of drilling in the second half of 2009 while the Sungei Lahei-1 exploration well, testing the deep potential of the Kerendan gas field, will be drilled in 2010.

The 4,400 sq km Citarum licence on Java sits next to a large number of producing fields (60 exploration wells have been drilled onshore with 29 discoveries). Two multi-target prospects, Pasundan and Kujang, have been identified in the northern part of the licence. Pasundan-1 was drilled in 2007, running overtime and over budget when it encountered severe down-hole losses in a subsurface cavernous zone in the principal Baturaja Formation carbonate reservoir. Although no real hydrocarbons were recovered, the well did prove the existence of an excellent reservoir system in the area and Sound is keen to test the well. The drilling of the Kujang prospect has been put on hold until additional seismic has been shot. 

In early 2008 Sound’s partners in the Citarum block ran into financing problems and defaulted on US$5.8 million of cash calls. This was resolved in May and a new operator, Pan Orient, was brought in, a move that is expected to inject new life into the exploration project. Forward plans are expected to include a 750 km 2D seismic shoot in Q3 2008 to identify new prospects for drilling in 2009 plus testing of the Pasundan-1 well.

Board of Directors and Key Management

Chairman and Chief Executive	Gerald Orbell
Finance Director	Tony Heath
Executive Director	Jossy Rachmantio
Non-executive Director	Simon Davies
Non-executive Director	Michael Nobbs
Non-executive Director	Patrick Alexander
Non-executive Director	Ilham Habibie

Company Address Fetcham Park House Lower Road Leatherhead, United Kingdom KT22 9HD Telephone: +44 (0)1372 371010 Facsimile: +44 (0)1372 371017 Email: info[at]soundoil.co.uk Website: http://www.soundoil.co.uk

Nominated Brokers Hichens Harrison & Co. plc Bell Court House 11 Blomfield Street London EC2M 1LB Evolution Securities Ltd 100 Wood Street London EC2V 7AN

Nominated Advisors Smith & Williamson 25 Moorgate London EC2R 6AY

Major Shareholders

Pershing Keen Nominees Limited	267,219,062
Credit Suisse Client Nominees Uk Ltd	75,523,000
Credit Suisse Securities EU Ltd	53,080,356
State Street Nominees Ltd	30,000,000
HSBC Global Custody Nominee UK Ltd	27,707,781
Forest Nominees Ltd	26,770,454

Related News

25/06/09 - Sound Oil Remains Frustrated By Bangkanai Delays But New Citarum PSC Seismic Should Help Define Future Exploration Strategy
17/12/08 - Sound Oil Has a Disappoinment With Its Pasundan-1 Well Onshore Java, Indonesia

Most Recent Statement

13/11/08 - Citarum PSC - Operations Update
29/09/08 - Interim Report 2008
01/08/08 - AGM Statement
01/07/08 - 2007 Annual Report
30/06/08 - Availability of annual report and Takeover Code
20/06/08 - Preliminary results for the year ended 31 December 2007