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(Alliance News) - A gas field in which United Oil & Gas PLC and Prospex Energy PLC own stakes was approved for development by the Italian government, both companies said in separate statements on Tuesday.
United shares were up 7.8% to 5.18 pence in London. Prospex shares were down 1.4% to 1.60p.
Italy gave environmental approval to the Selva gas field in the north of the country, paving the way for a full production licence, Prospex said. Selva is owned by a joint venture between United, Prospex and Australian company Po Valley Energy Ltd.
Dublin-based United owns 20% of the venture, while London-based Prospex owns 17%.
Development work has started to prepare the Selva field for production in mid-2022, Prospex said. It has 13.3 billion cubic feet of gas reserves.
"Gas production at Selva promises to transform Prospex Energy's financial profile and with this in mind the granting of full environmental approval for the development of the field is a key milestone for the company," Prospex Chair Bill Smith said.
Separately, United announced a discovery at the Abu Sennan field in Egypt in which it owns 22%. Well-testing is now planned and will be followed by an application for a development lease if successful.
"Today's announcement is another positive result from Abu Sennan, which, initial interpretations suggest, is in line with our pre-drill estimates," United Chief Executive Brian Larkin said.
By Ivan Edwards; ivanedwards@alliancenews.com
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