The Teodorico project (formally d40 PY AC) 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.

Subsequently 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. In November 2014 the Italian Ministry of Economic Development has formally awarded Po Valley a preliminary Production Concession and invited the Company to commence the environmental approval process for Teodorico. The Environmental Impact Assessment (EIA) documentation was submitted in the first half of 2017.