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20

Po Valley Granted 20 Year Production Concession

Po Valley Energy Ltd has been granted a 20 year production concession for the Castello gas field near Milan, Italy, which is expected to become its first gas producing asset

Po Valley Energy Ltd has been granted a 20 year production concession for the Castello gas field near Milan, Italy, which is expected to become its first gas producing asset.

This is the first such concession awarded by Italy's government in the Po Valley region since the since the deregulation of the country's gas sector in 1998.

The Perth-headquartered oil and gas explorer said in its September quarter report that its primary objective was getting the Castello and Sillaro fields into production.

Chief executive Michael Masterman said in a statement on Monday he expected gas production from the single-well Castello project to commence in the second quarter of calendar 2009.

The field is expected to have an initial production rate of 2.7 million cubic feet per day.

Italian energy group ENI previously produced about 12 billion cubic feet of gas from the field over eight years in the 1980s.

Shares in Po Valley were up five cents, or 3.85 per cent, at $1.35 at 1314 AEDT Monday.

Author: Jo Amey