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(Sharecast News) - Reabold Resources updated the market on its subsidiary LNEnergy on Wednesday, in which it holds a 26.1% stake.
The AIM-traded firm said LNEnergy's primary asset is an exclusive option for a 90% interest in the Colle Santo gas field, onshore Italy.
LNEnergy reported a significant development milestone on 20 December, having successfully submitted the environmental impact study (EIS) for its new small-scale liquefied natural gas (LNG) development plan at the Colle Santo field to the Ministry of Environment and Energy Security.
Reabold described that as a crucial step towards obtaining the production concession for Colle Santo.
The environmental impact study was conducted on behalf of LNEnergy by its technical partner, Italfluid-Cosmep, in collaboration with subsidiaries and several independent technical specialists.
Continuing its efforts to move closer to full project approval, LNEnergy was now focusing on securing authorisation to conduct a long-term test and monitoring of the Colle Santo gas field.
Under the long-term test programme, a newly-formed scientific technical committee, led by the engineering and geology department of the University of Chieti-Pescara, would act as a qualified independent third-party institution responsible for overseeing data collection and verification.
The Colle Santo gas field holds substantial potential, with an estimated 65 billion cubic feet of 2P reserves.
Additionally, two production wells had already been drilled and flow-tested, rendering the field development-ready.
LNEnergy expected Colle Santo to yield around €11m to €12m in gross post-tax free cash flow per annum.
"LNEnergy continues to progress the approval process for both the long-term test programme and full field development," said co-chief executive officer Stephen Williams.
"This will unlock the considerable value and gas resources available at the Colle Santo gas field."
Williams said there was a strong technical team driving the processes forward, adding that the company was "very pleased" with the progress made since its initial investment in May.
"Colle Santo is an important project for Italy, and for Reabold, and we look forward to keeping shareholders up to date with future developments."
At 1334 GMT, shares in Reabold Resources were down 2.13% at 0.12p.
Reporting by Josh White for Sharecast.com.
