Petroceltic's Italy drilling partner ENI seeks new well permit
PETROCELTIC'S partner ENI is seeking to drill a completely new well at an Italian site operated by the two companies.
ENI has applied for a suspension of its permit on the site at the Italian Po Valley, an operation that has been plagued by delays. This will allow it to select a completely new well for drilling.
Petroceltic, the oil and gas exploration company focused on North Africa, the Med and Black Sea regions, brought ENI in as a partner to develop its Italian site in 2011. The two companies each own a 47.5pc stake in the Carisio permit.
ENI said the suspension of the permit and selection of a new well would allow it to meet local concerns relating to the distance of the well from nearby village Carpignano Sesia.
Local opposition has meant the Po Valley operation has been plagued by delays.
The selection of a new well will require a new environmental impact assessment by June of 2014. Drilling would begin six to nine months after that.
Davy Stockbrokers said this latest development was "clearly not the preferred outcome", but that the geological quality of the site justified these efforts. "The prize is substantial," said the firm.
Petroceltic's share price didn't budge in early trading yesterday, at €1.60 per share.