Saffron Marks First Gas at Italian Field

Saffron Energy, the AIM-listed gas producer in northern Italy, said April 18 that first gas commenced April 13 at its Bezzecca field, east of Milan.

Commissioning and ramp-up leading to anticipated flow rates in the range of 30,000-40,000 m³/d would continue during April 18 following the recent short shutdown during the Easter break, said Saffron, adding that production from Bezzecca is sold at a price of approximately €0.21 per m³, equating to €190,000-€250,000 per month in revenue on production of 30-40,000 m³/d.

When combined with its Sillaro gas field production of 10,000 m³/d, Saffron expects net production from its Italian assets to increase to 40-50,000 m³ per day (between 250 and 315 barrels of oil equivalent per day).

Saffron has an offtake agreement with Shell for all gas produced from its fields, which goes directly into the Snam-operated Italian national gas grid.

Bezzecca gas field in northern Italy (Photo credit: Saffron Energy)

Saffron CEO Michael Masterman said that first gas at Bezzecca had been achieved “on time and on budget and represents a great technical, financial and management achievement for the company and shareholders.”

Mark Smedley