3 non-operated onshore gas production concessions

• Masseria Acquasalsa (8.8% working interest)
• Lucera (13.6% working interest)
• San Mauro (18% working interest

Production

At Torrente Cigno, low-grade natural gas production is used to generate 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:

• 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.

Development Potential

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