Bezzecca completed on schedule and within budget

RNS Number : 1451A

Saffron Energy PLC

22 March 2017

 

22 March 2017

Saffron Energy Plc

("Saffron" or the "Company")

Bezzecca completed on schedule and within budget

Saffron Energy plc (AIM: SRON), the onshore natural gas producer with interests in northern Italy, is pleased to confirm it has achieved mechanical completion of the Bezzecca natural gas project outside Milan within budget and on schedule. Certificates for mechanical and instrumentation completion have been issued and safety and performance testing is underway.

The Bezzecca project includes the Bezzecca gas field, the 7.5km newly constructed tie-in pipeline, the Vitalba gas plant and national grid connection.

The Bezzecca gas field is an approved production licence located east of Milan within the established gas-producing Po Valley region in northern Italy. Gas from Bezzeca 1 will be processed at the Vitalba processing plant.

An offtake agreement for gas supplied from all the Group's Italian gas fields is in place with Shell Energy Italia S.r.l. Gas produced from the Company's fields is transported directly into the Italian national grid, which is owned and operated by SNAM Rete Gas S.p.A.

The next key step will be the inspection by Italian Ministry of Economic Development (the "Ministry") and the Lodi and Cremona fire brigades, which is expected to occur in early April.   Following a satisfactory inspection, the Ministry will then issue approval to start the first commercial natural gas production and revenue.

Final Ministry approval to commence gas production is expected in early April 2017. The Company will update the market when this final milestone occurs.

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.

For more information, please visit www.saffronenergy.co.uk or contact the following:

Saffron Energy plc	[phone]
Michael Masterman, CEO	[e-mail]
Grant Thornton UK LLP (Financial & Nominated Adviser)	[phone]
Colin Aaronson
Samantha Harrison
Harrison J Clarke
Turner Pope Investments (TPI) Ltd (Broker)	[phone]
Ben Turner	[e-mail]
James Pope
Cassiopeia Services PR/IR	[phone]
Stefania Barbaglio	[e-mail]

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 field (Sant'Alberto), near Milan and Bologna. Saffron Energy commenced trading on the London AIM Market under the ticker of SRON on 24 February 2017.

 

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