Reabold Resources PLC (AIM:RBD) co-chief executive Stephen Williams told investors “the regulatory environment in Italy is looking increasingly promising”, after the country’s government approved a decree designed to boost renewable energy production and energy security.
The company, in a statement, noted that the decree gives incentives to build plants for energy production from renewable sources, such as the liquefaction of natural gas.
It also releases new licences for the exploitation of gas fields aimed at providing gas to industries with high gas consumption, at competitive prices, and incentives for LNG terminals and incentives for carbon dioxide storage programmes.
The decree is in place and the parliament has 60 days to ratify it into a definitive law.
“With the Colle Santo gas field, we have an asset that can help Italy improve its energy security and provide a much needed domestic energy supply to the country,” Williams said.
“We look forward to updating shareholders with our progress."
Reabold holds an 18.4% interest in LNEnergy which in turn owns 90% of the Colle Santo gas field.
Callo Santo is described as “highly material gas resource” and “development ready” comprising some 65 billion cubic feet of reserves with two production wells (which are already drilled and flow tested).
LNEnergy believes Callo Santo has the potential to generate €11-12 million of gross post-tax free cash flow per year.
Reabold retains an option to invest a further £1.65 million into LNEnergy, to increase its stake to 26.1%.