An Independent Competent Person’s Report ‘CPR’ confirmed today 13.3BCF of proven and probable reserves sit within the Selva Gas Field, located in the Po Valley region of Italy. The reserves are subject to the award of a Production Concession, where preliminary approval has already been granted.
The successful drilling and testing of the Podere Maiar 1 well prompted a reclassification of its previously reported contingent resources to proven and probable reserves. The well had a peak flow rate of 148,136 scm/day, on a 3/8 inch choke with good pressure recovery and no water production.
What’s exciting for the companies involved, is the existing additional prospectively within the license, with several potentially larger targets adjacent to the field, particularly in the Selva East, Selva South Flank, and Riccardina structures.
Two AIM listed late stage explorers hold interests in the license,with a 20% interest in the project, representing 2.7BCF attributable to the company, and who have a 17% interest in the asset, translating to 2.26BCF of reserves attributable to the company.
The CPR confirming the reserves will represent maiden gas reserves for both PXOG and UOG, a key milestone for both companies.
United Oil & Gas PLC CEO, Brian Larkin, said: “With preliminary approval for the development plan received in January, we remain on course to bring Selva into production in 2020 with facilities designed to produce at a gross rate of up to 150,000 cubic metres per day.”
Shares in United Oil & Gas ticked up 4% to 5.1p a share following the release of the report.
Bill Smith, Prospex non-executive Chairman said: “In a short space of time, Prospex has been transformed from an investment company with a growing portfolio of interests in late stage European onshore projects, to one that is asset-backed and cash flow generative.”
Shares in Prospex Oil & Gas were up over 8% to 0.293p following the release of the report.
What is exciting is that once the Podere Maiar-1 well establishes a production history, a clearer picture will emerge, which, given the good connectivity that was observed when the field was previously producing, could result in more probable reserves being upgraded into proven and probable.
A 1km long pipeline is to be laid as part of the plan to connect the plant to the Italian National Grid.
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