Schlumberger has signed an agreement to invest €7.5m to offer services on Sound Energy’s forthcoming Badile well.
The Badile permit is situated in the Piedmont Lombard basin in northern Italy and is next to Eni’s Gaggiano oil field.
Initially, the permit area was held by Eni in the exclusive zone until 2004 and a total of 460 line km 2D and 238km² 3D seismic were acquired between 1974 and 1990.
The agreement is subject to conditions precedent and signature of an agreement between the companies to cover the investment during a period expiring 18 months from the date of signing the agreement.
In exchange, Sound Energy will offer an option to Schlumberger, which is exercisable at no additional cost at any point during a six month period.
This will take place after concluding a well test and the declaration of a potential commercial discovery at the Badile licence to acquire a 20% net profit stake in the licence.
Sound Energy CEO James Parsons said: "Following the early success at Tendrara, I am delighted to reveal the first of our funding solutions for Badile whereby Schlumberger gain access to a 20% profit interest in the licence in exchange for funding 30% of the estimated cost of the first well and 20% of all costs thereafter.
“The Schlumberger / Sound Energy partnership now spans multiple assets and multiple geographies and remains a critical differentiator for our company, which technically de-risks and funds our key asset.”
Sound Energy expects to continue broadening of the partnership across existing, as well as new assets.
