18 November 2014
Watson, Farley & Williams (“WFW”), a leading international law firm, is pleased to announce that it has advised Sound Oil on a €7 million reserve-based lending facility for developing its Nervesa gas discovery, in onshore northeastern Italy. The loan is provided by Greenberry, Sound Oil’s cornerstone investor, and secured on the Carità permit, which includes Nervesa.
After the award of the first production concession, the loan will be without recourse to Sound Oil. Half of the free cash flows from Rapagnano and Nervesa for a 24-month period will be ring-fenced and used to repay the loan. Rapagnano is a gas-producing Sound Oil project in Italy. As part of the loan, Greenberry will be paid a royalty on gross revenues from the Nervesa discovery, which is expected to start producing gas in mid-2015.
Sound Oil is a Mediterranean focused AIM-listed oil and gas exploration and production company.
The cross-border WFW team was led by London Finance partner Joe Levin, assisted by associate Nehal Khan, Corporate partner and WFW Head of Italy Eugenio Tranchino in Milan and senior associate Luca Sfrecola in Rome.
Partner Joe Levin, commented: “We are pleased to have advised Sound Oil on this deal which is providing the company with important additional liquidity to continue the development of its flagship asset, the Nervesa field. Our ability to provide both English and Italian law advice and work seamlessly across jurisdictions made us well placed to advise Sound Oil on this transaction, and we look forward to building on the significant client relationship we have already developed with them.”