4th Jul 2019 11:43
(Alliance News) - Prospex Oil & Gas PLC on Thursday said it is on course for the Podere Gallina concession to start first production in 2020 following work on the Selva field.
Shares in oil and gas investor Prospex were up 8.8% at 0.14 pence in London in late morning trade.
Speaking at Prospex's annual general meeting, Chief Executive Ed Dawson said the firm has been working to bring the Selva field in Italy into production, after encouraging flow tests. The CEO noted that Prospex's key goals are to bring a second field in production and achieve a second year of net profit in 2019.
Selva is located within the onshore Podere Gallina licence, for which a production concession was awarded on a preliminary basis in January. Prospex, which has a 17% interest in the licence, is now expecting first production at Podere Gallina to begin in 2020 with a gross rate of as much as 150,000 cubic metres per day.
"The final award of the production concession will not just cover the Selva field, but also multiple follow-on targets and prospects on Podere Gallina, including targeting the up dip of two of Selva's historic gas producing North Flank and South Flank reservoirs," said Dawson.
CGG Services UK Ltd has estimated that the two reservoirs have between a 60% and 70% chance of containing 14.1 billion cubic feet of gross contingent resources, of which 2.40 billion cubic feet would be net to Prospex.
Outside of Italy, work programmes are continuing at the Tesorillo prject in Spain, which might hold a gross unrisked prospective resource of 830 billion cubic feet of gas at best estimate.
Dawson said the failure to find commercial levels of hydrocarbons at the Bainet-2 well in Romania was "disappointing", but said the estimated EUR260,000 cost to Prospex meant it was "low cost" and has a "limited bearing on the additional prospects" at the Suceava project.
"All three of our projects hold historic discoveries, multiple prospects and leads, and benefit from easy access to infrastructure. Our existing asset base therefore provides us with considerable run-room to build on the two discoveries we have already made in Romania and Italy and grow the value of the Company further," said Dawson.
"With much activity planned across our assets over the next 12 months, including bringing Selva online, I look forward to providing further updates on our progress, as we look to continue to expose our shareholders to value trigger events and in the process generate value for our shareholders."
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