Zenith’s Italian subsidiary operates, or has working interests in, a number of energy production assets producing natural gas, condensate and electricity.
Further, the Company is awaiting Italian regulatory approval for a transaction to acquire the entire natural gas production and exploration portfolio of AIM listed Coro Energy plc in Italy. Upon completion of the transaction, Zenith will be positioned as one of Italy’s largest natural gas producers.
6 operated onshore gas production concessions
Zenith has a broad portfolio of interests in onshore natural gas production and exploration assets across Italy. These include:
- Masseria Grottavecchia (20% working interest)
- San Teodoro (100% working interest)
- Torrente Cigno (45% working interest in natural gas production; 100% ownership of 4 gas powered electricity generation units onsite)
- Misano Adriatico (100% working interest)
- San Andrea (40% working interest)
- Masseria Petrilli (50% working interest)
3 non-operated onshore gas production concessions
- Masseria Acquasalsa (8.8% working interest)
- Lucera (13.6% working interest)
- San Mauro (18% working interest
Italian average daily production is approximately 55 BOE.
At Torrente Cigno, low-grade natural gas production is used to generate a highly profitable electricity production of approximately 900 MWh per month. Italy offers a series of very attractive opportunities for junior exploration and production companies, specifically in relation to natural gas.
We consider the key advantages of operating in Italy to be the following:
- Zenith operates in established hydrocarbon producing areas, where there is a strong understanding of the geology and development potential of the assets, as well as a ready availability of logistical infrastructure and oilfield service companies.
- A low-risk jurisdiction with a strong EU regulatory framework.
- An established hydrocarbon producing country, with a long and successful history of natural gas production and exploration across its territory spearheaded by ENI.
- Italy’s economy is heavily dependent on oil and gas. The large import of natural gas to satisfy Italian energy requirements further reinforces the importance and commercial value of domestic production.
Zenith’s Italian energy production interests hold significant potential for development and increased energy production. The development programme is primarily concentrated on the Torrente Cigno concession, where the Company is finalising a plan to drill a development well, to be named MV-2, to explore the updip structure of the Miocenic and Cretaceous carbonates formations