United Oil and Gas awarded Italian concession
London-listed United Oil & Gas has been granted approval to develop the Selva Gas Field in Italy.
Selva, which is located less than one kilometre from the Italian National Gas Grid, includes the Podere Maiar-1d appraisal/redevelopment well, where strong flow rates from testing operations confirmed a "significant" commercial gas discovery in January last year.
United holds a 20pc interest in Selva.
"The preliminary award of the Selva production licence is a key regulatory milestone in advancing Selva towards production," Brian Larkin, United Oil & Gas CEO, said.
"It is also a significant milestone for United as commercial gas production at Selva is expected to generate significant cash flow for the company from 2020 onward," Mr Larkin, who is a veteran of both Tullow Oil and Providence Resources, added.
The development plan will involve the installation of a fully automated gas plant at the existing Selva/Podere Maiar-1d well site, and the running of a one-kilometre long pipeline to connect to the nearby Italian National Grid connection.
The development is targeting production at a rate of up to 150,000 cubic metres a day gross from the C1 and C2 reservoirs in the Medium-Upper Pliocene sands of the Porto Garibaldi Formation.
Subject to successful 3D seismic results from the upcoming programme, additional wells will be drilled to target the additional prospectivity in the licence, including the Selva East, Selva South Flank, and Riccardina structures.
Founded in 2016, United initially raised funding through private investment. In 2017 the company listed on the London stock market.