Operations are due to start at the Colle Santo onshore gas field after the Abruzzo regional government signalled its intention to approve an early production programme.
DE-RISKING
Reabold Resources plc holds a 16.2% equity interest in the project, estimated to hold 65bcf of 2P reserves, while operator LNEnergy Ltd has an exclusive option over 90% interest in the field.
Co-chief executive officer Stephen Williams said that the approval would considerably de-risk the granting of the full concession and the small scale liquefied natural gas project.
The early production programme includes production of gas for 24 months, conversion of gas to power for sale to the electricity grid and renewal of the Abruzzo region’s earlier 24-month test approval permit.
Electricity, generated by gas turbines, will be tied into a nearby distribution connection point.
Most of the equipment needed for the electricity generation can be locally rented so minimising costs, added Reabold.
“Following a review with the heads of environment, energy, and mining of the Abruzzo region, the Abruzzo regional government confirmed its agreement with, and intention to approve, by decree, the early production programme for the Colle Santo gas field, allowing early revenue generation from the Colle Santo project.
“It is anticipated that the formal decree from the Abruzzo region will be provided over the coming months and accordingly, LNEnergy, has entered the operational phase of development at the Colle Santo gas field.”
The programme and associated monitoring will also help complete the work required by the VIA Commission before it grants the full development concession for Colle Santo.