Reabold's LNEnergy cheers start of operations at Colle Santo in Italy

(Alliance News) - Reabold Resources PLC on Tuesday said that it has begun operations at the Colle Santo gas field after making progress on environmental regulations.

Reabold is an oil and gas investing company with a portfolio of exploration, appraisal and development projects in the UK, Romania, the US, and Italy.

It holds a 16% interest in LNEnergy Ltd, which in turn holds an exclusive option over a 90% interest in the Colle Santo gas field in Abruzzo, Italy.

Following a review with the heads of environment, energy and mining in the region, the Abruzzo regional government has said it intends to approve the early production programme for Colle Santo.

The terms of the programme include the production of gas for two years, the conversion of gas to power for sale to the electricity grid, and the renewal of the Abruzzo Region's earlier 24-month test approval limit.

Reabold expects to receive formal permission from the government over the coming months. Accordingly, it has entered the operational phase of development at the Colle Santo field.

Once on stream, electricity will be generated from gas turbines, and tied into a nearby distribution connection point to generate revenue.

"We are pleased with the speed and efficiency of the regulatory process in the Abruzzo Region to date and delighted to reach this stage of the Early Production Programme. We can see a clear pathway to generating revenue from gas to power in the near-term, and we believe this news considerably de-risks the granting of the full concession to LNEnergy and the small scale LNG project," said Co-Chief Executive Officer Stephen Williams.

"Italy needs domestic energy supply to keep prices lower. We look forward to updating shareholders with further progress on the Colle Santo development."

Reabold Resources shares were trading 2.7% higher at 0.095 pence each in London on Tuesday morning.

By Holly Beveridge, Alliance News reporter

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