Sound Oil updates Indonesian ops

The following is an edited excerpt taken from Sound Oil plc?s Half Yearly report filed with the London Stock exchange on Monday. (ed)

Citarum PSC, onshore West Java, Sound Oil 20%
Considerable progress has been made towards completion of the outstanding work commitments on the Citarum Production Sharing Contract (PSC), onshore Java, Indonesia. Over 40% of the initial 750 km 2D seismic program has been acquired, covering the Subang-Purwakarta areas, approximately 100 km southeast of Jakarta in the central part of the block. These data are currently being processed and recorded and the quality is superior to that acquired in the adjacent areas by previous operators. On preliminary results the Operator has identified a number of interesting leads in the depth range 1700-2000 m which it is hoped to mature into prospects for drilling. Completion of the remainder of the data in the eastern part of the block is expected near the end of 2009 to early 2010. Drilling of the three exploration wells is scheduled to commence in the second half of 2010.

Bangkanai PSC, onshore Central Kalimantan, Sound Oil 35%
On Bangkanai PSC, onshore Kalimantan, we are continuing with our efforts to attract new investors into the licence with a view to re-starting the stalled exploration activity on the block. Development of the Kerendan gas field and implementation of the gas to power project retains a high priority with the Indonesian Government and negotiations are currently in progress to agree a gas price and conclude a gas sales agreement with the state electricity company PLN. First gas is anticipated in 2011.

Expansion
The Company continues to review new production and development opportunities for potential acquisition and strengthening of our asset portfolio in the area. To this end our technical teams in UK and Indonesia are actively pursuing a number of opportunities through various Government and private offerings.(end of excerpt)