Sound Oil Discussion Thread

Sounds current drill in Indonesia should be close to news


Citarum PSC, Java (Sound Oil 20%)

The Jatayu-1 exploration well commenced drilling at 21:30 local time on 21 March 2012. The well will be drilled to a total measured depth of 8714 ft (2656 m) to target the limestones of the Miocene Parigi Formation. Operations are scheduled to continue for 30 days.

Around 8th May according to this...

http://cnrp.marketwire.com/client/pan_orient/release.jsp?actionFor=1599305&releaseSeq=1&year=2012

Buffy

Heads up!

SOU is up 15% today, no news yet but the Jatayu-1 exploration well news is well overdue. It is worth almost 1p to the share price.

May 11 2012

Sound Oil (LON:SOU) was among the most searched for UK stocks on Google Finance today along with blue chips BT (LON:BT.A) and Experian (LON:EXPN). Interest in the oil and gas junior was sparked by its operations in Indonesia, where operator Pan Orient Energy is currently drilling the Jatayu-1 exploration well, targeting the limestones of the Miocene Parigi formation.

The prospect has been estimated to have gross P90-P50-P10 prospective gas resources of 140-290-530 billion cubic feet respectively.

The Jatayu well will be followed by exploration wells at Cataka and Geulis on the Citarum permit, all of which will be drilled by the same rig.

In its most recent operational update, Sound told investors that Pan Orient had drilled the top-hole section and the well would be deviated towards the main target.

On message boards, investors speculated that the company was due to report on the well next week.

http://www.proactiveinvestors.co.uk/companies/market_reports/42666/fridays-most-followed-sound-oil-serica-energy-nautical-petroleum-noventa-sierra-rutile-tclarke-0000.html

Loads of exciting drilling to come for Sound

-Cataka in May
-Kerenden in June
-Geulis in July
-Nervesa in August
-Ropagnano in August
-Strombone in December
-Kerenden deep in Q1 2013

All worth about 10p to the share price i.e. 10 bagger!

Pan Orient Energy Corp have a good track record with drilling, one of the reasons why I think this is a good risk:reward investment.

Looking good....


http://www.investegate.co.uk/Article.aspx?id=201207100700052684H

Operations Update - Indonesia



Sound Oil, the upstream oil and gas company with assets in Italy and Indonesia, is pleased to announce the following update on its operations in Indonesia.



Citarum PSC, Java (Sound Oil 20%)



The Operator of the Citarum block has released a detailed update on the Jatayu-1 exploration well. A 7" casing has been successfully installed in the present sidetrack immediately above the gas-bearing section encountered in a previous sidetrack where some 390 feet of gross gas-bearing section has been recognized below 5530 ft TVD (true vertical depth). This interval displayed extremely high mud log gas readings and approximately 600 psi overpressure. Gas shows were still present at the bottom of the previous sidetrack at approximately 5920 ft TVD, when the drill-pipe stuck. This required the present sidetrack to be drilled. It is the intention now to drill ahead below the casing to approximately 6000 ft TVD and obtain wireline logs over the section of interest. Dependent on logging results a decision will be taken as to whether to target the Parigi objective, some 1700 feet deeper, or to stop drilling and test the well.



Bangkanai PSC, Java (Sound Oil 5%)



The Operator has reported to partners that mobilization of the drilling rig for the Kerendan field development and West Kerendan exploration well is ongoing following some minor delays in shipping the equipment along the Barito River to the Luwe Hulu staging area in Kalimantan. The rig is now 40% rigged-up and operations are expected to start in August.





Gerry Orbell, Sound Oil's Chairman and Chief Executive commented:



"The Jatayu prospect is proving a significant exploration project for Sound. Already we have encountered a gross gas column comparable with some of the larger surrounding fields in a secondary objective above the main target zone. The successful installation of the liner has isolated the problematic section which necessitated the previous sidetrack operations. The Jatayu well will be followed by exploration wells at Geulis and Cataka on the Citarum permit, all of which will be drilled by the same rig.



We are pleased that the Kerendan project is now progressing satisfactorily. The operations in central Kalimantan present some challenging logistics and we are very pleased that our Operator is now bringing this project to the execution phase".

I'm interested to see that Sound Oil (LON:SOU) has been on a real tear recently - up by 150% since 20th September, having spent a couple of months in the doldrums. Sure there have been a couple of good news items recently (including a well spud in Indonesia and a production restart plan in Italy) - but the move seems pretty large and rapid?

Market cap now c. £30mn after the rise - so perhaps it is more a reflection of having been "unfairly" beaten down than of some corporate action in the wings, which had been my first thought.

Note that the shares have only recovered to the bottom edges of the price range that applied when the above posts were made in May and July....so presumably plenty of bulls must have fled in the meantime?

so presumably plenty of bulls must have fled in the meantime?

Nah....I'm still around waiting to recoup my losses. Interesting to see how it all turned around though. Just goes to show markets are driven by sentiment and doing nothing most of the time is the way to play the markets and selling during times of excessive bullishness and buying during the pessimism is the way to make money.

Sold at 1.42 - Time will tell if I am wrong.

And Mohamed Fayed picks up 3.01%