Saffron Energy PLC First Gas flows at Bezzecca (5439C)
April 18 2017 - 1:00AM
UK Regulatory
TIDMSRON
RNS Number : 5439C
Saffron Energy PLC
18 April 2017
18 April 2017
Saffron Energy Plc
("Saffron" or the "Company")
First Gas flows at Bezzecca
Saffron Energy plc (AIM: SRON), the natural gas producer with
interests in northern Italy, is pleased to announce that first gas
production from the Bezzecca gas field commenced on Thursday 13
April 2017. Commissioning and ramp-up leading to anticipated flow
rates in the range of 30,000-40,000 scm per day, equivalent to
190-250 barrels of oil equivalent per day (boepd) will continue
today following a short shut down over the Easter break.
Production from Bezzecca is sold at a price of approximately
EUR0.21 per scm which equates to EUR190-EUR250k per month in
revenue, on production of 30-40,000 scm.
Reservoir performance will be evaluated during the current
quarter on each of the three perforated levels and steady state
production is expected mid-year. When combined with the Company's
production from the Sillaro gas field, which alone is producing
10,000 scm per day, Saffron expects net production from its Italian
assets to increase over four times its current production to
40-50,000 scm per day (approximately 250-315 boepd).
Bezzecca is located east of Milan within the established
prolific, gas-producing Po Valley region in northern Italy and
operated by Saffron's subsidiary Northsun Italia SPA (NSI). Gas
from Bezzecca 1 is processed at the Vitalba processing plant.
Saffron has an offtake agreement with Shell Energy Italia S.r.l.
for the gas produced from the Company's fields, which goes directly
into the Italian national grid, owned and operated by SNAM Rete Gas
S.p.A.
Chief Executive Officer of Saffron Energy, Michael Masterman
commented: "First gas at Bezzecca is a significant financial
milestone for Saffron coming within seven weeks of the successful
IPO. It has been completed on time and on budget and represents a
great technical, financial and management achievement for the
Company and shareholders. The commencement of production will boost
revenues and operating cash flows consolidating our portfolio and
provides further validation of the Company's strategy.
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
About Saffron Energy PLC
Saffron Energy is a natural gas producer with interests in
Northern Italy. Its portfolio includes one gas production
(Sillaro), one near-term gas production field (Bezzecca (90%)) and
an application for a near-term gas production field (Sant'Alberto),
all near Milan and Bologna. Saffron Energy commenced trading on the
London AIM Market under the ticker of SRON on 24 February 2017.
For more information, please visit www.saffronenergy.co.uk or
contact the following:
Saffron Energy plc +44 (0) 7791288381
Michael Masterman, CEO info@saffronenergy.co.uk
Grant Thornton UK LLP (Financial +44 (0) 207 383
& Nominated Adviser) 5100
Colin Aaronson
Samantha Harrison
Harrison J Clarke
Turner Pope Investments (TPI)
Ltd (Broker) +44 (0)2036214120
Ben Turner info@turnerpope.com
James Pope
Cassiopeia Services (PR/IR) +44 (0) 7949690338
Stefania Barbaglio Stefania@cassiopeia-ltd.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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