Avanti Energy (CVE:AVN) shares gained 10% on Wednesday after the company said its application to convert the Colle Santo exploration permit into a production concession licence submitted in April as well as its June environmental impact assessment (EIA) study are proceeding as normal.
The Ministry of Environment is currently evaluating the company’s filing documents which include all three components of the development: gas production, gas pipeline and gas treatment. Review of the EIA is proceeding in accordance with standard operating protocol.
Importantly, the public comment period expired at the end of August and the company is currently completing its response to all comments. Of equal importance to the permit approval process, the mandatory 150-day EIA review period is set to expire at the end of November of this year. The company will quickly respond to questions or comments arising from this review.
On a separate but related topic, Italy is set to vote on its constitutional reform referendum on Dec. 4. While the outcome of the referendum does not have a direct bearing on the company’s production concession application at Colle Santo, it is generally believed that a “yes” vote in December will have an overall positive impact on foreign investment in Italy and the operating environment for most industrial activities.
“We are greatly encouraged that the company’s efforts in submitting a responsive and logical development plan have been rewarded thus far. We are looking forward to successfully completing the EIA review process and moving ahead with the Colle Santo project in conjunction with all levels of government and all stakeholders,” stated Karl Kottmeier, company president and chief executive officer.
Located in central Italy, the Colle Santo project is the largest undeveloped onshore gas field in Italy. Colle Santo contains 72.3bn cubic feet of gross proven undeveloped conventional natural gas reserves and an incremental 12.0bn cubic feet gross probable undeveloped conventional natural gas reserves, based on the April, report from Chapman Engineering in accordance with the COGE Handbook.
The current proven and probable field limits cover 2,451 acres and the reserves have been fully delineated by two existing new wells along with six older wells. The two existing new wells are currently capable of production in excess of 20mln cubic feet of gas per day.
Avanti shares were up 9.4% to C$0.18 on Wednesday.
Story by ProactiveInvestors