Last checked at 14 Sep 2010 07:00
14 September 2010
Independent Resources plc
("IRG" or "the Company")
Rivara Gas Storage Project Update
Independent Resources plc (IRG:L) is pleased to provide a brief update regarding its Rivara gas storage project in Northern Italy, for which it is currently seeking environmental approvals ahead of planned development. The Company continues to work constructively to ensure full compliance with Italy's stringent environmental and planning regulations.
A new move by Italy's Ministry of Environment to engage the support of a recently enlarged group of specialists is expected both to accelerate the analytical time-frame of the Environmental Impact Assessment Commission ("VIA Commission") and allow a more rigorous and in-depth analysis of the project.
Recent meetings between the Company and VIA Commission representatives allowed the Company and its technical team to illustrate the many technical aspects of the project to this enlarged group, which include geologists and gas storage facility specialists. They will help the VIA Commission to accelerate the examination of the more than 3,000 pages of material the Company submitted in September 2009. The Company welcomes this development as demonstrable proof the Ministry intends deploy the necessary resources to reach a conclusion soon.
Containing an estimated 3.2 billion cubic metres (110 bcf) of gas, Rivara's effective working capacity could add over 20% to peak deliverability into Italy's heavily strained supply network during the winter season. The Company has previously drawn attention to Ministerial and regulatory authority statements recognising the crucial importance of the project, in which the major Italian energy group ERG holds a 15% stake, but remains constantly aware of the need to cooperate and comply fully with the necessary processes in order to minimise chances of an uncertain outcome.
In addition to the latest move by the VIA Commission, the Technical Group of the Emilia Romagna Region Fire Brigade ("CTR") during July began the examination of the documentation the Company has submitted for their risk analysis of relevant safety incidents.
Separately, the Regional Command of the Fire Brigades has also officially notified the Company that its procedure for the storage facility's preliminary safety certification is due to conclude by the end of October 2010. This certification is required to secure the storage concession.
The Company continues to update documentary evidence and analysis formally required to conclude the storage concession procedure, and will update the market as and when it has material news to report in this regard.
| For further information, please visit www.ir-plc.com or contact: | ||
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| Grayson Nash | Independent Resources plc | +39 06 4549 0720 |
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| Allan Piper/Simon Hudson | Tavistock Communications | 020 7920 3150 |
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| Jonathan Wright/ Stewart Dickson (Corporate Finance) | Seymour Pierce Limited | 020 7107 8000 |
| Richard Redmayne/David Banks (Corporate Broking) |
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Background details follow:
Independent Resources is the planned developer of the Rivara underground storage site located in the Po Valley, Northern Italy, a deeply-buried, highly-fractured limestone structure with inherent geological characteristics that make it ideal for summer gas storage and rapid winter withdrawal, using the benefit of a natural water drive. It is also located right at the hub of Italy's gas transmission system, along the main trunk line corridor from North Africa into Southern Europe.
IRG is aiming to develop the project against a backdrop of Italy's urgent demand for new gas storage facilities, following disruptive winter supply shortages and major supply disruptions. Independent Resources has continued to work carefully within the complex framework laid down by the regulatory and environmental processes in Italy, where Rivara remains a key project. IRG characterises Rivara as a much-needed infrastructural investment in an extremely under-supplied market, and as a project that is relatively insensitive to short-term fluctuations in market conditions.
IRG was admitted to AIM in December 2005 and, alongside its exploration interests in Tunisia, where operations are ongoing, is pursuing an integrated gas business in Italy which includes the onshore Ribolla shale gas basin near the north-west coast, and the strategically-positioned Rivara gas storage facility in the Po Valley. The company is focusing on developing both conventional oil and unconventional gas production, and building a profitable portfolio through wholly-owned initiatives and partnerships.