Located in Ancona Province, the permit is currently operated by SARP with 100% working interest.
Sound Oil, through its majority held subsidiary Apennine Energy, will pay about $290,000 to SARP as a contribution to past expenditures and fund the entire cost of the Casa Tiberi-1 well up to $1.08m to earn a 75% working interest in the permit and the operatorship.
The exploration well will be drilled to 700m to evaluate potential gas-bearing sands in the Lower Pliocene Cellino formation.
SARP has already received necessary approvals from the relevant authorities for the drilling of the well.
Sound Oil chairman Gerry Orbell said the well will be drilled as an addition to the existing operations program, using funds previously raised by the company earlier in 2011.
