Independent Resources (LON:IRG), the AIM listed energy group, this morning signalled that the tortuous process of securing a licence for its Rivara gas storage facility in Italy’s Po Valley was nearing a conclusion. Despite the Italian Government’s urgent need to establish better domestic gas storage centres, Independent Resources has been forced to endure protracted environmental processes despite Rivara apparently having the support of Italian Prime Minister, Silvio Berlusconi. Today’s upbeat assessment by executive chairman Grayson Nash was enough to send the company’s shares up by 8.5% to 70p.

Announcing the company’s results for the half year to March, Mr Nash said Rivara was expected to receive project approval within months. Elsewhere, he said Independent Resources was embarking on “one of the most interesting periods in the company’s history” as it awaits the results of appraisal testing from its Fiume Bruna coalbed methane project, also in Italy, and the forthcoming drilling of two wells at Ksar Hadada in Tunisia, which are due to begin within a month under the operatorship of £PCI. He said the company had ended the period with £3.3m in cash and had posted pre-tax losses of £85,000 against £127,000 last year.

By far the most important project for Independent Resources is Rivara, which promises to be a major element in Italy’s future gas planning. While environmental assessments have been under way, the company has brought in renowned experts to provide “authoritative comfort” to all stakeholders that the project is useful, beneficial, and absolutely safe. At an estimated 3.2bn cubic metres, Rivara's effective working capacity will expand Italy's current total gas storage capacity by over 20%. In June 2008, Independent Resources sold a 15% stake in Rivara to Italian energy group ERG, which valued its remaining 85% stake in the project at €53.8m.

Unlock the rest of this article with a 14 day trial

Unlock with Email
Unlock with Google

Already have an account?
Login here