Po Valley secures Italy gas licence

Perth-based gas company Po Valley Energy Ltd has been awarded its first offshore oil and gas licence in the Adriatic Sea off Italy's east coast.

The company won a competitive preliminary award by Italy's Ministry of Economic Development for the 526 square kilometer exploration licence, which is close to shore and previously owned by Italian energy giant ENI.

The licence is also on the same trend as Po Valley's gas fields stretching between Milan, Modena and Bologna.

"While historic low energy prices meant ENI did not develop the fields in the early 1990s, we are confident that subject to successful appraisal, a number of these prospects could be expected to become significant commercial gas developments," Po chief executive Michael Masterman said.

The company expects first output from the area by early next year with the production plant and grid connection infrastructure currently under construction.