Saffron Energy PLC Bezzecca commercial production begins. (9377E)
12 May 2017 - 4:00PM
UK Regulatory
TIDMSRON
RNS Number : 9377E
Saffron Energy PLC
12 May 2017
12 May 2017
Saffron Energy Plc
("Saffron" or "Saffron Energy" or the "Company")
Bezzecca commercial production begins. Testing now complete.
Saffron Energy plc (AIM: SRON), the natural gas producer with
interests in northern Italy, is pleased to announce that testing of
the primary production layers from the Bezzecca well is complete
and production planning has been finalised. The initial plan now is
to operate all three levels with an estimated combined flow of
30,000-35,000 cubic meters per day (scm/day). Steady commingled
production will be achieved through the installation of a downhole
choke above the Miocene level R.
Level A in the Pliocene has flowed in excess of the planned
production rates at stabilised flows of 20,000-25,000 scm/day and
is on production. This flow rate is above the levels estimated in
the CPR.
Level R in the Miocene has also been tested and flowed at 25,000
scm/day slightly below CPR estimates.
In addition, level S was flow tested for a shorter period, and
will contribute to production at around 5,000-10,000 scm/day.
Production will continue in level A at 20,000-25,000 scm/day up
to the end of June, with production levels increasing to
30,000-35,000 scm/day from early July when levels R and S will be
added, once the bottom hole choke is delivered and installed.
Bezzecca is located east of Milan within the established
prolific, gas-producing Po Valley region in northern Italy and
operated by Saffron's subsidiary Northsun Italia SPA (NSI). Gas
from Bezzecca 1 is processed at the Vitalba processing plant and
directly connected to the national grid, which is owned and
operated by SNAM Rete Gas S.p.A. The gas is sold to Shell Energy
Italia S.r.l. under an existing off-take agreement.
The Company will provide a trading update in due course to
include the Group revenue and profit figures, along with updated
flow rates.
Chief Executive Officer of Saffron Energy, Michael Masterman
commented: "It's a very important achievement for Saffron to have
moved into revenue producing commercial production at Bezzecca
following completion of the commissioning and testing stage. Level
A is now in production, producing above expected rates. We look
forward to further increasing production in July when we move to
comingled production from all three levels. We are also on track to
bring Sant' Alberto on stream in Q4 2017 as well as actively
seeking new opportunities to substantially increase revenue and
production within the Group."
About Saffron Energy PLC
Saffron Energy is a natural gas producer with interests in
Northern Italy. Its portfolio includes two gas production fields
(Sillaro) and (Bezzecca (90%)) and an application for a near-term
gas production field (Sant'Alberto), all near Milan and Bologna.
Saffron Energy commenced trading on the London AIM Market under the
ticker of SRON on 24 February 2017.
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
For more information, please visit www.saffronenergy.co.uk or
contact the following:
Saffron Energy plc +44 (0) 7791288381
Michael Masterman, CEO info@saffronenergy.co.uk
Grant Thornton UK LLP (Financial +44 (0) 207 383
& Nominated Adviser) 5100
Colin Aaronson
Samantha Harrison
Harrison J Clarke
Turner Pope Investments (TPI)
Ltd (Broker) +44 (0)2036214120
Ben Turner info@turnerpope.com
James Pope
Cassiopeia Services (PR/IR) +44 (0) 7949690338
Stefania Barbaglio Stefania@cassiopeia-ltd.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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