Reabold Resources plc’s investee company in the Colle Santo gas field has received permission for well work and to start installation and commissioning of the monitoring network.
LNG PROJECT
LNEnergy, which has an exclusive option over 90% interest in the Italian onshore field, is now allowed to begin well integrity and well service testing on the two existing production wells.
Reabold has a 16.2% equity interest in Colle Santo project estimated to hold 65bcf of 2P reserves, with the field ready for development on approvals.
The company describes the project as a low risk, small scale liquefied natural gas development concept targeting first gas for 2025.
PERMIT PROCESS
As part of the approvals process, LNEnergy received permission for the work from the Italian National Bureau of Hydrocarbons and Georesources (UNMIG), the minerals division of Italian Ministry of Environment and Energy Security (MASE).
The next stage is to receive a formal decree from MASE to conduct the work.
LNEnergy expects a decision late in 2023 on a two-year, long-term production test permit to “significantly de-risk” the full concession permit for more than 20 years’ production.
“It is encouraging to note the favourable indication from UNMIG that early work on testing and monitoring can begin at the Colle Santo gas field,” said Reabold co-chief executive Sachin Oza.
“Our focus now turns to finalising this stage of the approvals process with a view to commencing operations later this year once all necessary.”