I spy with my ‘Roman eye’. Now Confirmed.
Is the future looking “rosato” for share-holders over at Sound Oil (LON: SOU)? Punters may recall last month the company announced a £14 million pound investment. Heads of Terms with a new Institutional Investor, Continental Investment Partners SA. When the news dropped the sp went on a charge. The £14 million funding injection is to be used to progress their ‘world class’ Badile prospect and ‘material’ Laura discovery.
Continental Investment Partners has agreed to pay approx. 9 pence per share, a thumping 69% premium to the three month VWAP. The shares today stand at 8.5p. The smart money is moving in here now. Don’t be surprised if yet another Institution takes a slice of the Sound oil pie.
Then a few days later (April 28 2014) they announced the signing of a non-binding heads of terms with Niche Group for a farm down of the Company’s onshore Carita licence in the Po Valley, Northern Italy. The Carita licence area includes the Nervesa discovery. Niche will acquire, subject to due diligence, a 27.5% interest in the Carita licence in exchange for paying 100% of the costs of a second well planned for Q2/Q3 2014. That’s a €6,000,000 saving for Sound who still hold a 72.5% interest in the Carita licence.
Here’s a whisper that reached the site this morning. Yesterday the new head of one of Italy’s biggest energy company’s had a dinner date in Rome with the CEO of a London listed company. Now I don’t know if this is the Sound Oil CEO James Parsons. (Who was in Rome). Coincidentally one of the guests was a ‘Mr Madeddu’. Could this be the Luca Madeddu who has over 24 years of experience in the upstream oil and gas industry working for ENI?
Luca now works for Sound Oil. Luca’s bestest buddy while he was working for nigh on a quarter of a century at ENI was? The new CEO of ENI, Claudio Descalzi. I wonder what was on the menu?
NB. Today’s RNS came 24 hours later than we predicted. But it was a Bank Holiday.