Independent Resources announces that the Italian Government has approved plans for production testing at the IRG-operated Fiume Bruna coalbed methane (CBM) project near the north-west coast, which is Italy's first CBM project.
The approval clears the way for IRG to start drilling within an agreed area and to acquire new seismic data. The seismic acquisition work is due to start within the next few weeks, ahead of drilling the first well and putting it on a long-term production test.
Results from earlier seismic and appraisal work, including the drilling and coring of a stratigraphic borehole late in 2006, have produced an in-place resource estimate for Fiume Bruna of 170 billion cubic feet, with a recoverable resource of 92 billion cubic feet.
IRG Executive Chairman Grayson Nash said: 'This project promises the development of a potentially very important energy resource in a market where there is a healthy growth in demand for gas and where existing indigenous gas production is falling rapidly.'
IRG is working at Fiume Bruna alongside Norwest Questa Engineering, a leading US consultancy group with specialist CBM expertise. The main purpose of the planned production test is to determine gas production and any water flow rates from the coal in place. Rigs and service companies have been short-listed, and negotiations are at an advanced stage to finalise these contracts. A seismic acquisition and processing contractor has already been engaged.
This approval by Italy's Ministry of Economic Development finalises the permitting process of the exploration licence.
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