Disclosure: Financial Investigative Media Limited, which is not owned by Tom Winnifrith but by a trust for his dependants, owns shares in companies mentioned in this article. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Saffron (SRON) has confirmed that it has completed the logistics for a tie up of its Bezzecca natural gas project outside Milan within budget and on schedule. Certificates for mechanical and instrumentation completion have been issued and safety and performance testing is underway.
This means that once inspection by Italian Ministry of Economic Development and the Lodi and Cremona fire brigades, which is expected to occur in early April is done the field will move into production. The gas will be sold via a newly built 7.5 kilometre tie-in pipeline. Following a satisfactory inspection, the Ministry will then issue approval to start the first commercial natural gas production and revenue.
Gas from Bezzeca 1 will be processed at the Vitalba processing plant and sold under the deal whereby Saffron can sell all its gas, to Shell. So this will be two fields onstream and material cashflows being generated. That is not yet in the share price.
The shares are now well above our limit buying price at 8p-8.75p but we seen them moving ahead sharply as AIM wakes up to the material cashflows this company is starting to generate. Our target to sell remains 12p+ so this is a very strong hold indeed .
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