ECHO.L Regulatory News (ECHO)

22 Jan 2009 10:11



22 January 2009

Independent Resources plc ('IRG' or the 'Company')

Re Rivara

Statement re Press Comment

Independent Resources, the AIM-quoted natural gas storage and exploration company, notes the press article that was published in The Times in London on 20 January 2009 which, the directors of IRG believe, results from comments in the Italian press by the Italian Prime Minister's undersecretary Carlo Giovanardi, discussing his conversations with the Italian Economic Development Minister, Minister Scajola. The press articles are translated below.

Whilst the Company remains confident that Rivara is set to become an important asset in respect of Italy's security of energy supply, it continues to be aware of the need for the careful involvement of all the parties affected by the planned development of Rivara, at all levels of government.

IRG is currently seeking environmental approvals ahead of the planned development of Rivara. The Company is currently working to ensure full compliance with Italy's stringent environmental and planning regulations. Despite the press articles, the Directors are not aware of any change in relation to the timing of approval process for Rivara.

A translation of the articles appears below:

Press Agency ANSA Modena 08.01.09 - Minister Scajola has confirmed to me the preoccupation of the entire government regarding the scarce gas storage capacity in our country, aggravated by the fact that during the past two years under the Prodi government there has been no significant improvement of the situation. So affirms the Prime Minister's undersecretary Carlo Giovanardi, who at Palazzo Chigi met with the Minister of Industry Claudio Scajola to examine - in a statement - the situation that has been created in Italy following the decision by Russia to cut gas supplies to the Ukraine. The Italian government therefore regards as strategic the increase in gas storage capacity in our country and towards this end Minister Scajola - adds Giovanardi - has informed me of an imminent simplification of the procedures with the dual objective of augmenting the quantity of stored gas and to guarantee the future stability of prices at consumption. In this context naturally must be inserted the Rivara gas storage project for which it not acceptable that there be unjustified and prejudiced local ideological battles, before the relevant authorities have judged on the standards of safety required for its development.

The Gazzetta di Modena 09.01.09 - The Russian gas question and the Rivara gas storage project continues to keep front stage. Undersecretary Giovanardi yesterday returned to the issue: I met Minister Scajola at Palazzo Chigi to examine the situation. The Minister has confirmed to me the preoccupation of the entire government regarding the scarce gas storage capacity in our country, aggravated by the fact that during the past two years under the Prodi government there has been no significant improvement. The Italian government regards as strategic the increase in gas storage capacity in our country and towards this end the Minister has informed me of an imminent simplification of the procedures with the dual objective of augmenting the quantity of stored gas and to guarantee the future stability of prices at consumption. In this context is inserted the Rivara gas storage project for which it not acceptable that there be unjustified and prejudiced local ideological battles, before the relevant authorities have judged on the standards of safety required for its development.

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ABOUT RIVARA:

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 recent winter supply shortages and major supply disruptions.

The Company recently achieved significant progress with Rivara, bringing in a major Italian partner, ERG Power & Gas SpA, a subsidiary of the Italian energy firm ERG SpA. The Company also secured a politically significant, long-term anchor customer, Confindustria Ceramica, to provide them with up to 4% of Rivara's expected nameplate gas capacity of 3.2 billion cubic metres for gas storage.

As in the past, Independent Resources has continued to work carefully within the complex framework laid down by the regulatory and environmental processes in Italy, where Rivara remains its 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.