Rivara underground gas storage facility
Independent Resources plans to construct a large underground storage (UGS) facility by storing natural gas in a deep, naturally fractured reservoir in Italy's Po Valley. The Rivara project has been granted a provisional long-term concession by Italy's Ministry of Productive Activities (MAP) which is subject to completion of a satisfactory environmental impact assessment and final approval by MAP. MAP is eager to encourage new gas storage capacity in the country to alleviate expected deficits in this industry which is a matter of public interest. The company expects to complete this approval procedure in the near term.
Underground natural gas storage is a common feature of almost all gas delivery systems and has been used for many decades. It a well-understood process that is environmentally benign and involves a low-impact physical profile.
Rivara's working capacity is estimated at approximately 3.2 billion cubic metres (bcm), which would make it one of largest gas storage facilites in Italy and in Europe. The company anticipates that it will be developed in a commercial partnership, using long term project finance.
The company currently expects to develop Rivara in three stages, with the first stage coming on stream in 2010.
The key potential benefits of the Rivara storage facility are:
the large capacity of the structure
its unique geological features not only allow for faster injection and withdrawal than conventional gas storage facilities, but for constant peak gas deliverability throughout its annual operational cycle
its potential to go a long way towards meeting the growing demand for gas storage capacity in Italy
its geographical location, close to a trunkline intersection on the transcontinental "gas highway"
its strategic value in enabling the company to negotiate equity interests in North African gas fields supplying Italy.
Independent Resources has also filed an application for a second potential gas storage facility at Canton in northern Italy, with a nominal capacity of 1.5 bcm. This application awaits completion of the feasibility studies at Rivara. No other parties are entitled to compete for the Canton facility in the meantime, and provided the commercial viability of Rivara is established, Canton could prove to be an additional valuable asset for the company
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INDEPENDANT RESOURCES
Integrated gas storage and E & P company arrives on AIM
Posted Wednesday, December 14, 2005
A UK energy group positioned to exploit rapidly growing gas demand and ease supply shortages in Italy arrives on London’s AIM market.
Independent Resources plc has a portfolio of projects that includes a major underground gas storage concession near Bologna, and highly prospective oil and gas acreage in Italy and North Africa.
The company’s admission to AIM follows completion of a placing to raise £5.1 million for 25.2% of the company at 60 pence per share. Independent Resources’ assets include the planned Rivara underground gas storage facility, where a massive fractured limestone formation offers the opportunity to inject and withdraw natural gas rapidly to match seasonal demand patterns.
It has the potential to become one of the largest gas storage facilities in Italy at a time when the country is facing a growing shortfall in gas deliverability.
The company also has exclusive rights to the Fiume Bruna coal bed methane (CBM) permit in Tuscany, and a 40% interest in the Ksar Hadada permit onshore Tunisia.
Grayson Nash, Executive Chairman of Independent Resources, said: "Our arrival on AIM will enable us to progress our plans to become a significant player in the storage, supply and production of hydrocarbons within the Mediterranean region. We have a highly integrated strategy, and a management team with the technical and commercial skills to create value from our promising projects."
Approximately 33.4 million shares will be admitted to AIM, at 60p per share, valuing the company at just over £20 million. Deloitte Corporate Finance is the nominated adviser and Hichens Harrison & Company plc the broker to Independent Resources.
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