Saffron Energy to start production at Milan gas field

Natural gas producer Saffron Energy has received the final approval from the Italian government for to start production at its Bezzecca gas field in Milan.

On Tuesday, the Italian Ministry of Economic Development approved the AIM-listed company’s application and now commissioning and gas production will start in the “coming days”.

Bezzecca is located within the gas-producing Po Valley region in northern Italy and is operated by Saffron's subsidiary Northsun Italia SPA.

Gas from Bezzecca 1 is processed at the Vitalba processing plant and is directly connected to the national grid.

Chief Executive Michael Masterman said the approval was a “significant commercial and financial milestone for Saffron coming within seven weeks of the successful initial public offering. It will significantly increase the overall Saffron gas production and strengthen our position and portfolio”.

Shares in Saffron Energy were up 4.06% to 8.98p at 0841 BST.