UK-based upstream Sound Oil received environmental approval Tuesday for a second appraisal well at its flagship onshore Nervesa gas project in Treviso, Italy.
The approval was granted by the Treviso provincial authorities.
Sound discovered the Nervesa gas field in 2013.
The company estimates Nervesa’s P50 recoverable gas resources at 24 billion cubic feet with an estimated value net of expenses and a 10 percent annual discount rate of $66 million.
Sound said it expects to win full environmental approval and a drilling permit from the Italian Ministry of Economic Development for the project.
The company said last month it started to order the long lead items for the second well at Nervesa.
In 2013, Sound’s first appraisal well at Nervesa confirmed 1,561 of gross pay and 784 feet of gross reservoir with 150 feet of net gas pay in 13 separate zones.
Sound’s CEO James Parsons said he feels “very encouraged by the streamlining of the Italian oil and gas permitting process, announced by the Prime Minister on Friday, which we expect to result in faster approval timelines going forward.”
Sound Oil is an exploration and production company focusing on the Mediterranean.