Project Update

8 May 2008 12:01

Sound Oil PLC08 May 2008 8 May 2008 Sound Oil plc Sound Oil partners cure their default at Citarum Sound Oil plc, which holds a 20% participating interest in the CitarumProduction Sharing Contract ("PSC"), West Java, through its subsidiary MitraEnergia Citarum Ltd, announces that its partners in the PSC have cured theirdefault (announced by Sound Oil on 18 March 2008)in the sum of $5.864 millionplus related interest and costs and therefore revert to good standing under theterms of the Joint Operating Agreement. The parties involved are the Operator, Bumi Parahyangan Ranhill Energia CitarumPte. Ltd (BPREC) with a 60% participating interest and Bumi Parahyangan EnergiPte. Ltd (BPE) with a 20% participating interest. Gerry Orbell, Sound Oil's Chairman said: "We hope that now this default episodeis behind us we can get on with this year's approved seismic program and work upmore prospects for drilling early in 2009." The Citarum Production Sharing Contract is an exploration area of over 4000 sqkm, situated to the south and east of Jakarta, Java. The Pasundan 1 well wasdrilled between 9th May and 27th September 2007. For further information please contact: Sound OilGerry Orbell, Chairman 07903 861 145 Smith & Williamson Corporate Finance Limited 020 7131 4000Azhic BasirovDavid Jones Buchanan Communications 020 7466 5000Tim ThompsonNick Melson This information is provided by RNS The company news service from the London Stock Exchange