Sound Oil surges on Shell Italia deal

Oil and gas investment group Sound Oil has signed a gas sales agreement for the Casa Tonetto production concession, with Shell Energy Italia Srl.

In a short statement released on Thursday, the London-listed company indicated the deal with Shell Energy Italia, which is the local arm of Shell Energy Europe Ltd, Royal Dutch Shell PLC's gas, power and emissions trading entity in Europe, for the Casa Tonetto production concession will include the Nervesa gas field.

"I am very pleased to report the signature of the gas sales agreement, which increases our exposure to Italian gas market and represents the first relationship with the Shell Group," said group chief executive James Parsons.

Sound Oil shares were up 7.93% to 15.92p at 1021 BST on Thursday.