Prospex Oil and Gas PLC Production concession application submitted, Italy (4469P)
29 May 2018 - 4:01PM
UK Regulatory
TIDMPXOG
RNS Number : 4469P
Prospex Oil and Gas PLC
29 May 2018
Prospex Oil and Gas Plc / Index: AIM / Epic: PXOG / Sector: Oil
and Gas
29 May 2018
Prospex Oil and Gas Plc ('Prospex' or the 'Company')
Production concession application submitted, onshore Italy
Prospex Oil and Gas Plc, the AIM quoted investment company, is
pleased to announce that it has been advised by the operator Po
Valley Energy Limited ('PVE') that a production concession
application has been submitted to develop a new high return gas
field in northern Italy (the 'Application'). The Application covers
the 80.8km(2) Selva Gas-Field ('Selva'), which includes the Podere
Maiar-1d appraisal/redevelopment well ('Podere Maiar' or 'the
Well'), where strong flow rates from testing operations confirmed a
significant commercial gas discovery in January 2018. Prospex holds
a 17% interest in Selva, which sits within the 331km(2) Podere
Gallina Exploration Permit (the 'Podere Gallina'), which is located
in the Po Valley region of Italy, a proven hydrocarbon province
where over 5,000 wells have been drilled historically.
Podere Maiar was drilled in Q4 2017 into the Selva Gas-Field
(previously operated by ENI), which historically produced 83Bcf of
gas between 1960 and 1984. In December 2017 two gas-bearing
reservoirs, C1 and C2, were encountered by the Well in the
Medium-Upper Pliocene sands of the Porto Garibaldi formation with
peak flow rates of 148,136 scm/day (5.2mmscf/d) on a 3/8 inch choke
and 129,658 scm/day (4.6 mmscf/d) on a 3/8 inch choke achieved
respectively in January 2018.
Under the first phase of the development plan for the Well, PVE
plan to install a fully automated gas plant at the existing
Selva/Podere Maiar-1d well site at a cost of EUR2.4m and run a 1km
long pipeline to connect with the nearby Italian National Grid
connection. Based on dynamic reservoir studies, first phase
production is targeted at a rate of up to 150,000 cubic metres (5.3
mmscf/day) a day from the successfully tested C1 and C2 reservoirs.
Accordingly, the formal Application, which has been submitted to
the Italian Ministry, covers the installation of a fully automatic
gas plant with capacity to produce 150,000 cubic metres
(5.3mmscf/day) of gas a day.
Crucially, significant further upside remains and in the second
phase of the development plan (contingent on 3D seismic results),
PVE intend to drill additional wells with a view to significantly
increasing the size of the Selva natural gas resource. Wells will
be drilled in the field's highly prospective Selva East, Selva
South Flank, and Riccardina prospects, all of which fall within the
production concession application area. 3D seismic will be acquired
(subject to JV approval) across these areas in the second half of
2018 and early 2019.
The Application will be considered for preliminary award at the
next Italian Ministry Hydrocarbon Commission meeting, which is
expected in July 2018. In the interim, PVE will prepare
documentation for the requisite Environmental Impact Assessment so
as to be able to commence the next stage of environmental approval
pending preliminary award of the Application.
Commenting on the news Managing Director, Edward Dawson, said,
"The submission of this production concession application marks a
significant step forward in the commercialisation and
recommencement of commercial gas production at the Selva Gas-Field
in Italy. Following the successful discovery of commercial gas at
Podere Maiar earlier this year, PVE has designed a clear
development plan from which to realise value in the near term
whilst also proving up the potential of the wider licence area,
with multiple prospects set to be advanced, each of which has the
potential to significantly increase the size of the overall Selva
Gas-Field.
"Selva is set to be a high return natural gas field development
and is undoubtedly a valuable asset within our multi-project
investment company, which also includes the Bainet gas discovery in
Romania, which is on course to commence production later this
quarter, and the Tesorillo Project in southern Spain, which has
gross unrisked Prospective Resources of up to 2 Tcf cubic feet of
gas. With multiple value triggers due in the coming months, we look
forward to keeping shareholders updated on developments and believe
2018 is set to be a very exciting year for Prospex."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
* * ENDS * *
For further information visit www.prospexoilandgas.com or
contact the following:
Edward Dawson Prospex Oil and Gas Tel: +44 (0) 20
Plc 3766 0325
Rory Murphy Strand Hanson Limited Tel: +44 (0) 20
Ritchie Balmer 7409 3494
Jack Botros
Duncan Vasey Peterhouse Corporate Tel: +44 (0) 20
Finance 7469 0932
Frank Buhagiar St Brides Partners Tel: +44 (0) 20
Charlotte Page Ltd 7236 1177
Notes
Prospex Oil and Gas Plc is an AIM quoted investment company
focussed on high impact onshore and shallow offshore European
opportunities with short timelines to production. The Company's
strategy is to acquire undervalued projects with multiple, tangible
value trigger points that can be realised within 12 months of
acquisition and then applying low cost re-evaluation techniques to
identify and de-risk prospects.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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