Coro Energy unconcerned by Italy exploration changes

Coro Energy updated the market on its production and exploration licenses located in the Republic of Italy on Thursday, following the introduction of the country’s Sustainable Energy Bill earlier in the week.

The AIM-traded firm said the bill included an increase in surface fees, as well as a temporary suspension in the permitting of activities for exploration licenses such as the drilling of exploration wells.

With the exception of the increase in surface fees, which was expected to increase group annual annual operating costs by approximately €0.1m, Coro said the bill’s contents were not material to its Italian portfolio.

That portfolio, which consisted of five exploitation concessions, remained under review as part of the post merger integration process.

“The legislation makes allowance for compensation for companies that are impacted,” the Coro Energy board said in its statement.

“Should it become necessary, Coro Energy could seek compensation for all exploration costs up to the withdrawal date.”