The Group’s corporate strategy is to grow the production of gas and operations at its 3 core gas fields: Sillaro, Bezzecca and Sant’Alberto at a low-cost relative to other oil and gas companies, providing the basis for future shareholder value creation.

With Bezzecca joining Sillaro in production in early 2017 (expected March 2017) and Sant’Alberto following later in the year (Q4 2017), this package of gas production assets will generate strong returns and cash-flows. The Group expects to achieve a combined production from the three fields of 4,000 mcfpd by 2019, equivalent to almost 700 boepd.

The Group plans to leverage the expertise, capability, and local knowledge of its management team in order to acquire and develop future potential exploration licences and new production concessions in the region, so as to underpin long-term and sustainable growth. Following production increases, Board’s intention is to reinvest into production expansion, then in the future look to return cash to shareholders through the payment of dividends.

The Directors believe that Italy remains an attractive market due to its high quality gas and oil, accessible and low-cost transportation network, and a pricing environment that has been stable and higher than other comparable European countries. According to the Snam Rete Gas Ten-year network development plan 2015-2024, Italy consumed 2.2 tcf in gas in 2014, which is expected to grow at 2.1 per cent per annum to 2024. Of this, only 231 bcf (0.2 tcf), or 11 per cent, was produced domestically, with the remaining 2.0 tcf imported from countries in the Mediterranean area.