ECHO.L Regulatory News (ECHO)

18 Jul 2007 07:01

Independent Resources PLC18 July 2007 Independent Resources plc Update on Rivara Independent Resources plc ("IRG"), the AIM-quoted natural gas storage andexploration company, will today meet with representatives from Italy's Ministryof the Environment ("MATT") as the next step in its application to develop anunderground gas storage facility ("UGS") at Rivara in northern Italy. The meeting will be held in Rome to discuss the transparent Environmental ImpactAssessment programme which IRG voluntarily decided to undertake last year inorder to address all environmental, health, safety and social issues of possiblerelevance to local and regional interests concerned about the planneddevelopment. This meeting marks another step forward following lengthy environmental impactsubmissions from IRG to MATT over the past 10 months. The meeting will alsoinclude a representative from the Regional Government of Emilia Romagna, thearea around Rivara, who is involved in the environmental impact assessmentprocess. The meeting, which is primarily planned to discuss technical issues, is alsoexpected to cover the status of the permitting process and its likely timing. As IRG reported with its interim results in May, Italy's Ministry for EconomicDevelopment has identified the lack of sufficient gas storage as one of theprimary reasons for the dramatic energy supply problems of recent winters, whichare not expected to be resolved for several years. Government representativeshave indicated publicly that a decision on Rivara would be made this year. The Environmental Impact Assessment is similar in many ways to the UK's planningprocess and is designed to ensure that planned projects are compliant withenvironmental and regulatory requirements and viable within those parameters.The process is expected to continue for several months and reflects IRG'scommitment to comply fully with all necessary environmental and planningrequirements surrounding the planned development at Rivara. IRG Chairman Grayson Nash said: "We fully recognise the wide-ranging concerns ofthe local community at its many political and social levels, and remain fullycommitted to an approach that fulfils the needs of all the regionalstakeholders." Mr Nash added: "We are of course aware of the concerns currently being voiced inItaly, which is a normal part of the political process in Italy. It is with thisin mind that we are working closely with officials at all levels of government.In particular, we are confident we can fully address any and all health, safetyand social issues. Against this background, we remain confident of maintainingpositive progress towards gaining the necessary permits." IRG's moves to develop a UGS at Rivara are set in the context of strongpolitical will in Italy to help alleviate the recurrent winter energy crisesthat have been afflicting the country. Increasing the level of underground gasstorage capacity is seen as a key component to the solution. Rivara is locatedat the crossroads of major gas pipeline infrastructure in the Po River valleywhich is likely to become the future hub of Southern Europe's rapidly-developinggas motorway. Rivara utilises a fractured limestone formation lying deepunderground in a saline aquifer under an impermeable seal, where gas can beinjected and withdrawn from naturally existing fissures in the rocks. Rivaratherefore utilises a common technology found and successfully operating in manygas producing and consumption markets, but would be new to and complementItaly's existing infrastructure IRG last month announced it has engaged Italy's Banca Intesa San Paolo to adviseon negotiations with parties seeking to take a stake in the planned Rivara development. It followed an earlier disclosure that the company has received approaches from major integrated and non-integrated gas majors keen to become key participants in the underground project. For further information contact: Stephen Staley, Managing Director, Independent Resources plc: 01332 865 253 07771 838 753Allan Piper, First City Financial Public Relations: 020 7242 2666 This information is provided by RNS The company news service from the London Stock Exchange