Business
Key well on Italian project
Key well on Italian project.
About this update from Nativo Resources Plc
[{"type":"text","content":"\n Independent Resources PLC\n25 September 2006\n\n\n \n Independent Resources plc\n\n Key step for Italy's first coal bed methane project\n\nIndependent Resources plc, ('IRG' or 'the Company') the\nAIM-quoted natural gas storage and exploration company, is pleased to announce\nit has commenced drilling a stratigraphic borehole to obtain detailed geological\ninformation on Italy's first coal bed methane project.\n\nThe well is expected to provide data for the appraisal of the methane resources\nwhich are known to lie in the Fiume Bruna coal basin north of the town of\nGrosseto in central Italy.\n\nThe planned project is based on producing gas from a six metre thick coal seam.\nPast mining of the coal was limited to shallow depths, and was ultimately halted\ndue to the generation of abundant methane in the deeper shafts.\n\nIRG Technical Director Roberto Bencini said: 'While the production of coal bed\nmethane is now well-established in North America and elsewhere, this will be the\nfirst well associated with coal bed methane in Italy. It will be valuable for\nplanning our next steps in appraising the commercial potential of the Fiume\nBruna licence.'\n\nDrilling is expected to take around two weeks, with results due over the\nfollowing months. The coal is expected at a depth of around 330 metres.\n\n\nFor further information contact:\n\n\nStephen Staley, Managing Director, Independent Resources plc: 01332 865 253\n 07771 838 753\n\nAllan Piper, First City Financial Public Relations: 020 7436 7486\n\n\nBackground follows:\n\nCoal bed methane is almost pure methane produced directly from coal seams.\nWhilst many conventional oil and gas fields comprise trapped hydrocarbons\ngenerated by coal deposits, producing gas directly from coal is a very different\ntechnical and economic proposition.\n\nIRG was provisionally awarded the Fiume Bruna exploration licence from the\nItalian Government in June 2005. The licence covers an area of 267 square\nkilometres and has very light work commitments.\n\nThe new well is an important step in the staged appraisal of the licence, which\nonly commits IRG to undertake subsequent phases once it is satisfied with the\nresults of the previous stage.\n\nDrilling results from this well are expected to provide information on coal\npermeability, the composition of water produced, and an accurate indication...