Sound Oil on track at Nervesa project after receiving environmental backing

Mediterranean-focused explorer Sound Oil has reiterated its expectation for its onshore Nervesa gas discovery to reach commercial production this year after receiving the environmental approval for the Italian project.

The AIM-listed company on Friday announced the receipt of the final approval of the environment impact assessment (EIA) for Nervesa from the Veneto Region.

The award of the field production concession from the Italian Ministry of Economic Development is expected to follow shortly, it said.

Chief executive James Parsons said the EIA approval "is another important step in progressing towards first commercial production at the Nervesa gas discovery, which Sound Oil expects to achieve during 2015."

Preparations for the drilling of the second Nervesa well are nearing completion and it is expected to spud before the end of the month.

The first Nervesa well drilled in 2013 is expected to initially generate over €4m in annual revenues.