Last checked at 1 Jun 2012 10:12
1st June 2012
Independent Resources plc
("IRG" or "the Company")
Rivara Project and Earthquake in Emilia Romagna
Independent Resources plc (IRG:L) is deeply saddened by the loss of life and the destruction as a result of the recent earthquake and continued aftershocks that have hit Italy's northern Emilia Romagna region. The Company's Rivara underground gas storage project is situated in the affected area.
The seismicity covers an extensive area, is relatively deep, and is consistent with the Company's analysis of the geologic stress regime that is present in this area. Seismologists who have studied the natural seismicity in the area on behalf of the Company have documented many seismic events similar to the recent earthquakes. Events of this magnitude have an estimated recurrence of approximately every 230 years, with a predictably large uncertainty. This seismicity is due to a large underlying plate that compresses as it moves north and this movement is independent of the much more superficial geologic system lying above it. There are a number of existing natural gas fields and storage facilities in proximity of the affected area and these remain unaffected and in operation. Heavily regulated gas storage facilities are engineered for any potential risks.
The Company's planned operations prior to construction of the Rivara gas storage project include extensive in-situ measurements and geo-mechanical modelling. In parallel, the Company has planned extensive geochemical and seismic monitoring during the life of the project.
The tragic events that have affected Emilia Romagna are the subject of intense study by the competent authorities and will require time to interpret and verify for consistency with the models. The Company has already made all its data and studies available to the authorities to assist with this analysis, and has committed to contribute more going forward. The Company expects a pause for the project and considers this understandable under the circumstances.
For further information, please visit www.ir-plc.com or contact: | ||
Grayson Nash | Independent Resources plc | +39 06 4549 0720 |
Allan Piper/Simon Hudson | Tavistock Communications | 020 7920 3150 |
Jonathan Wright/ Stewart Dickson (Corporate Finance) | Seymour Pierce Limited | 020 7107 8000 |
Richard Redmayne/David Banks (Corporate Broking) | ||
Background details follow:
Independent Resources is the planned developer of the Rivara underground gas 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 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 holds extensive unconventional oil exploration interests in Tunisia, unconventional gas exploration interests covering the entire Ribolla shale gas basin in Italy, and the strategically-positioned Rivara gas storage project in the Po Valley, in addition to other emerging interests in CO2 sequestration.