By OGJ editors
HOUSTON, Aug. 27 -- ENI SPA and Stratic Energy Corp., Calgary, are working toward joint development of Italy's largest onshore gas discovery in the past decade.
Grove Energy PLC, which Stratic Energy has acquired, discovered and production-tested Abbadesi-1 on the San Marco exploration permit in January 2005. ENI drilled Longanesi-1 in early 2006, proving that the field extends onto ENI's San Potito block to the west.
ENI is expected to be designated operator of the field, now named Longanesi, in the eastern Po Valley northwest of Ravenna. Longanesi lies between Alfonsine, Ravenna Terra, and San Potito gas fields.
Stratic has estimated its share of Longanesi recoverable gas at 42 bcf.
Stratic, by acquiring Grove Energy, holds 100% of the San Marco permit. It has also applied for the Casale Cocchi permit.
"The proposed way forward," Stratic said, "is for Stratic and ENI to unitize their interests in the field and undertake a joint development, rather than follow the traditional but more complicated route in Italy of 'unification' of concessions."
Unitization is likely to be based on an interim cost-sharing split between the permit holders with subsequent redetermination of each permit's interest in the gas in place. It is anticipated that initial cost sharing percentages and the key components of the unitization will be agreed shortly, Stratic said in late August. Development planning continues.
Work is in progress to firm up exploratory drilling locations for 2008 on the San Marco and Savio permits in the general area. Stratic is to earn a 50% interest in the large Savio permit along the Adriatic Sea coast south of Ravenna by funding an exploration well.
Stratic said technical and economic work to enable prospects on San Marco and Savio to be ranked for drilling is under way, and work on the Longastrino permit northeast of Longanesi field is also proceeding.
Meanwhile, Grove holds 100% interest in the GR 15 and GR 16 permits in the Sicily Channel, where seismic is to be shot in conjunction with extensions to the current exploration periods.
