(Alliance News) - Prospex Oil & Gas PLC said Tuesday it has received "key" environmental approval from the Italian Environmental Ministry for the development of the Selva Malvezzi gas field in northern Italy.
Prospex shares closed up 1% in London at 0.13 pence each on Tuesday.
The exploration investment firm said the environmental approval is a precursor to final sign-off by Ministerial decree, the issuing of the required intergovernmental agreement and the final grant of a production concession from Italy's Economic Development Ministry.
Gas production at Selva, which has gross gas reserves of 13.3 billion of standard cubic feet, is targeted to begin in 2020, the company said.
A preliminary production concession for the Selva field was granted by the Italian Government in January last year.
Under the proposed development plans, a fully automated gas plant will initially be installed at the existing Selva/ Podere Maiar 1dir well site, along with a one-kilometre long pipeline to connect the well with the nearby Italian national gas grid.
The planned Selva development has a small footprint of less than half a hectare and will have no emissions from any future commissioning of its gas inventory, the company said.
Non-Executive Chair Bill Smith, said: "Thanks to the receipt of this environmental approval, first gas production at Selva remains on course to commence at an initial rate of 150,000 cubic metres per day later this year."
"At this rate and at current gas prices, Selva will generate significant cash flow that will not only highlight the disconnect that has opened up between our market capitalisation and the value of our assets, but will also free up funds for reinvestment across our asset base," Smith added.
By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com
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