United Oil & Gas plc said that environmental approval has been given for its Selva natural gas interest east of Bologna in northern Italy.
The Podere Gallina licence, held by Australian operator Po Valley Energy Ltd, is for the development of the onshore Selva natural gas field concession in which United has a 20% economic interest.
Po Valley received approval for its Environmental Impact Assessment and has started development and preliminary work at Selva.
The operator plans to install a fully automated gas plant at the Selva-Podere Maiar 1dir well site and a one-km pipeline to connect to the Italian national gas grid.
An application for a full production licence is expected to be made during the Summer.
United Oil & Gas also has interests in onshore UK (PL090 Waddock Cross and Broadmayne), P1918 offshore Colter in southern England, P2480 offshore Zeta in the Outer Moray Firth; Abu Sennan concession for hydrocarbons in Egypt; and offshore Walton-Morant licence in Jamaica.