Reabold Resources upping its stake in LNEnergy to 26.1% boosts its exposure to another large ‘development ready’ gas asset alongside West Newton in the UK, further diversifying portfolio risk says broker Cavendish.
LNEnergy's main asset is a US$11m option over a 90% interest in the Colle Santo gas field in Italy.
Development of Colle Santo is planned via a micro-LNG project, which should smooth the regulatory approval path due to its small footprint
According to Cavendish, signals coming out of Italy suggest there is strong support for the project at local, regional and national levels driven by a desire for greater domestic energy security of supply.
LNEnergy has received permission from the Ministry of Environment and Energy Security (MASE) to begin initial work on two existing wells.
Italy’s government also recently approved a decree to boost renewable energy production, which includes the liquefaction of natural gas.
Cavendish has a target price of 1.2p against 0.12p in the market.