Sound Oil re-admitted to AIM following completion of Indonesian acquisition

UK-based oil firm Sound Oil announced on Thursday it had been re-admitted to the AIM section of the London Stock Exchange following the completion of acquisition of Mauritius-incorporated oil company Mitra Energia Limited.

Sound Oil, an AIM quoted upstream oil and gas company, has acquired Mitra in consideration of an issue of 223,376,623 new Ordinary Shares.

Mitra holds a 34 percent interest in the Bangkanai Block onshore Central Kalimantan and a 20 percent interest in the Citarum Block onshore Central Java.

Sound Oil's cash resources of over ?20 million will be used principally for the development of Mitra's gas interests in Indonesia, the company said.

Gerry Orbell, Chairman and CEO said within a few months the company and partners will started drilling the first of four high impact exploration wells in Bangkanai and Citarum, and to develop the Kerendan gas field in Bangkanai, which completion is expected 2008.

The Bangkanai block, operated by Elnusa Bangkanai which owns 51 percent of the block, includes the Kerendan gas field where hydrocarbon resources were discovered in 1982. Other participant in the block is Medco Energi, which plans to develop a gas-fired power plant using Kerendan gas.

Citarum block belongs to PT Bumi Parahyangan Ranhill Energia Citarum (BPREC) who got the contract on the block on October 7, 2005. BPREC is owned by Malaysian firm Ranhill Energy (60 percent and operator), Bumi Parahyangan Energi (20 percent) and Mitra (20 percent). No wells have been drilled on the block. (alex)