Sound Oil shares lift on production concession news

Shares in AIM listed Sound Oil rose on news it had regulatory clearance and could start commercial production for its Nervesa project.

Sound Energy

0.72p

10:04 15/11/24

-1.89%

-0.01p

The share price for Sound Oil was up 5.56% to 19p in early morning trading at 0812 BST.

Sound Oil said the Italian Ministry for Economic Development had awarded the Casa Tonetto production concession.

This meant Sound Oil has passed the final hurdle and can now start commercial production, with an aim of securing first commercial gas later this year.

Chief executive James Parsons said getting commercial gas at Nervesa would be a significant milestone for the company.

“Similar to the company's other existing onshore discoveries, Nervesa benefits from very strong gas prices. A gas sales agreement with a long term partner is expected to be signed shortly," Parsons said in a statement.

FinnCap initiated coverage of the stock at ‘buy’ with a 23p target price, and said its portfolio was attractive.

“We feel that the company's growing cash flow profile and balance sheet strength make it attractive for existing and new investors,” analyst Dougie Youngson said in a note.