The Strategic Approach
Through agreements with Northern Petroleum (UK) Limited signed in 2004, ATI has a 50% beneficial interest in each of 21 oil and gas permits and applications at various stages of progression both on and offshore Italy, covering an area in excess of 11,000 km².
This has been a large scale project to build a major licence position during a period of low competitive interest and pre-empting the resurgence of interest in oil and gas exploration in reaction to the new levels of oil price. Italy was chosen as a country with excellent petroleum potential, good licensing terms and a satisfactory fiscal regime. That phase is now essentially complete, subject to the award of the outstanding applications and a “Fast Track” programme has now been determined to progress those licences towards drilling and development for production.
On the scale of our endeavours the adoption of a statistical approach to the exploration risk and reward to assess the possible profit expectation of the exploration activities is applicable. This approach is designed to ensure that in the Italian arena, which we assess as profitable, we should hold access to sufficient opportunities to accrue a benefit by ensuring that the number of prospects is sufficient to overcome any short-term exploration failure which can occur in the oil exploration business.
The exploration content of the portfolio has been complemented by two applications, now beyond the date of contestation, which cover past discoveries and tested oil in Rovesti-1, Medusa-1 and Giove-2 in the southern Adriatic Sea and one offshore Calabria on which there is a discovery which reportedly tested gas at a rate of 15 mmcfd. In addition there is another well with multiple untested thin gas bearing sands in a position with a mapped large adjacent structure with a flat spot seismic anomaly.
The Petroleum Potential and Licence Terms...
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 Petroleum Potential and Licence Terms
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