Rome, Nov 10, 2008 AEST (ABN Newswire) - The Italian Government has granted Australia's Po Valley Limited (ASX:PVE) a 20-year production concession for the Castello gas field near Milan.
It is the first such concession granted by the Italian Government in the Po Valley region since the deregulation of the country's gas sector in 1998.
Po Valley has completed construction of the surface plant for Castello, which is currently awaiting installation.
Construction of the pipeline to take Castello gas to Italy's national grid will commence in December, with completion scheduled for early 2009.
"The granting of the final production concession for Castello will provide significant momentum towards the startup of our Italian gas production, which we are anticipating in the 2nd quarter of 2009," Po Valley's Chief Executive Officer, Mr. Michael Masterman, said today.
"The equipment is ready, pipeline construction is about to begin, and Castello is on track to become our first producing gas field," Mr. Masterman said.
The Castello field has proven gas reserves of 4.6 billion cubic feet (bcf), and is expected to have an initial production rate of 2.7 million cubic feet per day.
The Italian energy group, ENI, previously produced about 12 bcf of gas from the field over eight years in the 1980s.
"Castello will be a single-well field, which is a highly economical development format, with the bonus that the national pipeline grid is only 500 metres from the well location," Mr. Masterman said.
Contact
Michael Masterman
Po Valley Energy
Mob: +61-417-851-303
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