The AR94PY exploration permit is located in the shallow waters of the Adriatic Sea (offshore from the Emilia Romagna region) and contains two connected gas discoveries, Carola and Irma, both drilled and tested by the former operator ENI. The offshore gas project was renamed Teodorico. (Theoderic the Great was king of the Germanic Ostrogoths and ruler of Italy between 493 and 526).
The exploration permit was awarded to the Company in July 2012 and subsequently the Company selected 120 sq km of 3D seismic and well dataset for purchase from ENI.
Following the preliminary interpretation the updated Contingent Resources certified by Fugro-CGG in April 2013 (1C: 34.6 bcf, 2C: 47.3 bcf, 3C: 62.2 bcf) confirming the high potential of the gas discoveries within the permit.
The 2C 47.3 bcf more than quadruples the Company’s current production and development resource base.
Subsequent to the Contingent Resource assessment by Fugro-CGG, the Company commenced work on a preliminary development plan aimed to fast-track the progress of the project on several fronts.
To date the Company has invested EUR 1 million in:
- The Preliminary front-end engineering and design (PRE-feed) study, which is now complete;
- Full 3D seismic coverage (120 km) purchased from ENI, reprocessed and re-interpreted in house;
- Process and distribution at utility rate through ENI’s adjacent Naomi Pandora processing facility (tie-in discussion ongoing with ENI).
This progress has put the Company in a position to apply directly for a Production Concession.
In August 2015, the technical team completed the production concession application for Teodorico and filed it with the Ministry. The Company also announced a request for tender for the Environmental Impact Assessment and subsidence study for the field development. Tenders were received prior to the end of June and evaluation is currently in progress. Once the study has begun, it will take approximately three months to complete.