News

June 25, 2009

Sound Oil Remains Frustrated By Bangkanai Delays But New Citarum PSC Seismic Should Help Define Future Exploration Strategy

The past 12 months have been difficult for Sound Oil but, unlike many of its AIM peers, its headline numbers point to a retained financial strength that will see it through the next 12 months. The company, which has kept a tight rein on overheads, has posted a profit after tax of £45,000 due to a foreign exchange gain, reversing the £1.8 million loss of 2007, and ended the year with £15 million in cash and no debt. Chairman Jerry Orbell said this was “sufficient to conduct our activities beyond the next twelve months”. Beyond that, however, the company would need further funding or licence extensions to meet all its work commitments.

2008 saw the company face a number of operational and commercial challenges on its Bangkanai and Citarum PSCs in Indonesia.  On the Citarum PSC in Java (Sound 20 per cent), the big disappointment was the Pasundan-1 well, which produced only formation water at a rate of 2,900 barrels per day. The results are now being analysed to assess their impact on other prospects in the area, with the company deciding to delay drilling of the nearby Kujang prospect until it has acquired additional...