MELBOURNE, Dec. 1 -- Po Valley Energy Ltd., Sydney, has been granted a second production license for gas development and production in Italy.
The latest license is for production from its largest asset, Sillaro gas field near Bologna in northern Italy, and follows the license to produce its Castello field near Milan, which was granted earlier this month.
The 20-year Sillaro license gives Po Valley the right to production along with full approvals to do so from the environment, regional, and commune authorities.
Po Valley plans a two-well development with an initial production of 3.8 MMcfd. The field has estimated 2P reserves of 14 bcf.
Production from three gas-bearing zones will be piped straight into the Italian national grid, which is 300 m away.
Po Valley says the equipment is ready, the pipeline connection nearly completed, and first gas production will begin following that of Castello in 2009.