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The company said the 526 square kilometre exploration licence AR168PY (Azurra) is a major expansion from its current onshore-based Italian gas portfolio and is in one of the key petroleum provinces servicing Europe's energy demands.
The shallow offshore licence covers a previously drilled area close to shore and on the same trend as the Po Valley's gas fields that stretch between Milan, Modena and Bologna.
Prior to industry deregulation, the province was the exclusive domain of Italian energy giant ENI, which is producing five times more gas from its offshore Adriatic fields than its onshore Po Valley fields, chief executive Michael Masterman said.
Masterman also said the area is highly productive and has produced more than 350 million cubic feet per day.
"Under this award, the offshore block is a major step-up for Po Valley's gas exploration and production potential, as well as confirmation of the high regard in which the company is increasingly being held in Italy's fast-growing natural gas sector."
"While historic low energy prices meant ENI did not develop the fields in the early 1990s, we are confident that subject to successful appraisal, a number of these prospects could be expected to become significant commercial gas developments."
The company said the licence area has extensive 3D seismic coverage and Eni successfully drilled and tested positive gas flows in four separate wells.
"The former ENI wells are only 10 to 20 kilometres from existing pipeline connection points and with relatively short drilling times and significant production infrastructure, any new development wells could be brought on stream in short timeframes," Masterman said.
Po Valley is carrying out environmental clearance studies and is initiating the purchase and review of existing seismic, well log and test data ahead of the full granting of the offshore licence.
In other company news, Po Valley has received environmental approval to drill the Bezzecca gas target east of Milan, with the Bezzecca-1 well scheduled for drilling in November.
