The drill rig is expected to mobilise to the Sillaro-1 site, 25km east of Bologna, in late February.

Sillaro has proven and probable reserves of 54 bcf contained at two levels - 2,000 m and 2,400 m, according to Po Valley Energy.

It is the company's second development field to commence civil works since Po Valley Energy floated in December. Civil works began at the company's Vitalba gas field on 21 December 2004.

“Sillaro is our largest gas field and it’s a great start to the New Year to get this drilling project up and running,” said Po Valley Energy CEO Michael Masterman.

“This reinforces our commitment to achieving the company’s immediate objectives outlined in the prospectus,” he said.

”We look forward to announcing continued rapid development of our projects for our shareholders.”