Stratic, Eni Agree on Devt Plan for Italian Longanesi Field

Stratic and Eni have agreed on the Development Plan for the Longanesi Field, located in northern Italy's gas-rich Po Valley. The two partners have submitted the plan to the Italian authorities for approval.

The partners have agreed that Eni will operate the development.

Submission of this plan initiates the start of the formal regulatory process, which will take at least 12 months and is expected to result in the award of two production concessions (San Potito and Bagnacavallo), and the necessary consents to permit construction and drilling operations to commence within those concessions in 2010. The Development Plan includes the drilling of three new wells within the field, the completion of the two existing wells as producers, the building of a pipeline gathering system and processing plant and connection to the national gas grid. First gas is targeted for 2011.

Mark Bilsland, Chief Operating Officer, commented, "This is an important milestone in the development of the Longanesi field. We look forward to working with Eni to obtain the necessary consents to allow construction and drilling activity to commence."