Business
Update on LNEnergy and the Colle Santo gas field
Update on LNEnergy and the Colle Santo gas field.
About this update from Reabold Resources Plc
[{"type":"text","content":"\n\n7 August 2023\nReabold Resources plc\n(\"Reabold\" or the \"Company\")\n \nUpdate on LNEnergy and the Colle Santo gas field approvals process\nReabold Resources plc, the oil & gas investing company with a diversified portfolio of exploration, appraisal and development projects, is pleased to provide an update on developments in the approvals process for the onshore Colle Santo gas field in Abruzzo, Italy.\nAs announced on 9 May 2023 and 12 June 2023, Reabold has acquired a 16.2% equity interest in LNEnergy, whose primary asset is an exclusive option over a 90% interest in the Colle Santo gas field. The Colle Santo gas field is a highly material gas resource with an estimated 65Bcf of 2P reserves[1], with two production wells already drilled and the field is development ready, subject to approvals and permits. LNEnergy believes that the field has the potential to generate an estimated €11-12m of post-tax free cash flow per annum.\nAs part of the approvals process, LNEnergy has recently received a letter from the head of the Italian National Bureau of Hydrocarbons and Georesources (\"UNMIG\"), the minerals division of Italian Ministry of Environment and Energy Security (\"MASE\"), which gives permission to carry out well integrity and well service testing on the two existing wells and to start work on the installation and commissioning of the monitoring network at the Colle Santo gas field. The letter is a positive indication of support for the development of the Colle Santo gas field and the next stage is to receive a formal decree from MASE to conduct the work.\nLNEnergy is seeking a two-year, long-term production test permit which would significantly de-risk the full concession permit approval to allow for 20+ years of production. The Company expects a decision to be made on the two-year permit later in 2023.\nSachin Oza, Co-CEO of Reabold, commented:\n\"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. Our focus now turns to finalising this stage of the approvals process with a view to commencing operations later this year once all necessary permits are in place. We look forward to updating our shareholders with further progress on the project throughout the year.\"\nFor further information, contact:\n \n\n\n\n\nRea...