Michael Masterman, Chairman of W Resources (LON:WRES) and Po Valley (ASX:PVE) introduces its new company to the London AIM Market. Saffron Energy, a natural gas producer in Northern Italy, starts trading today on AIM following an oversubscribed placing.
The company currently holds three gas fields: Sillaro (in production), Bezzecca (first gas is expected in March) and the third one, Sant’Alberto, will come on stream in Q4 2017. CEO Michael Masterman explains why Saffron is unique investment case: it has producing gas fields, low operation cost and high margin with ability to generate growing gas flow and cash flow from day 1, a skilled ex ENI management team very strong gas price market with off take from Shell; finally, €20m of hard invested capital in a 7.5km pipeline, 4 completed production wells and 2 gas plants connected to the Italian grid. Over the next 2-3 years, the company will focus on increasing gas production from 1.5 to over 4 mcfpd by 2019.
