(Alliance News) - Cabot Energy PLC on Thursday said it has withdrawn from an Italian licence, though it will not be incurring any costs.
Cabot, alongside Royal Dutch Shell PLC's Italian unit, have decided to end their participation in the Cascina Alberto onshore exploration licence in Northern Italy's Po Valley region.
Shell will make a payment to Cabot to cover "the costs and inconveniences" of the withdrawal.
The move, Cabot says, is part of a plan to divest non-core assets to generate funds to work on other assets, mainly in the Adriatic and the Sicily Channel.
In February, the Italian government decided to suspend work on oil and gas exploration permits in the country while a national review is carried out.
Chief Executive Scott Aitken said: "The withdrawal from the Po Valley Cascina Alberto exploration permit is consistent with our strategy to divest non-core assets to enable Cabot to focus funding and management time on the exploration upside within the rest of our Italian portfolio."
Shares were untraded on Thursday afternoon in London at 3.56 pence each, giving it a GBP1.7 million market capitalisation.
By George Collard; georgecollard@alliancenews.com
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