In a statement, Po Valley said the Italian Administrative Court found the country’s Ministry for Economic Development should have provided more detailed reasons as to why it awarded the Ossola licence near Milan to Po Valley last July.

Po Valley said the Italian Hydrocarbon Commission found the company’s application for the Ossola licence area to be “more innovative, more complete and more functional” than the competing application from Edison SpA, Italy’s oldest energy company.

Edison subsequently challenged the award in the Administrate Court, which issued its judgment on the matter last week.

Po Valley said the court found no substantive grounds for overturning the ministry’s decision.

“It found, however, that the ministry should have provided a fuller explanation as to why it found the Po Valley application to be superior in terms of innovation, completeness and the functional logic of its work program,” Po Valley said.

“The judgment also confirmed that the ministry has discretionary powers to select from competing applications.”

Depending on whether Edison appeals, Po Valley said the Ossola application would be reconsidered at the next Hydrocarbon Commission meeting.

“Po Valley remains confident that re-award of the licence will be made by the Ministry for Economic Development to Po Valley.”