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LONDON (Alliance News) - Prospex Oil and Gas PLC said Tuesday that Po Valley Energy Ltd has submitted a production concession application for developing a new high return gas field in northern Italy.
The application covers the 80.8 square kilometres Selva Gas Field in which Prospex holds a 17% interest, that includes the Podere Maiar-1d appraisal well, which has a significant commercial gas discovery in January.
United Oil & Gas PLC, which holds a 20% stake in the Podere Gallina licence, also noted the application.
In the first phase of the development plan for the well, Po Valley Energy plans to install a fully automated gas plant at the existing Selva and Podere Maiar-1d well site at a cost of EUR2.4 million, and run a 1 kilometre long pipeline to connect with the Italian National Grid connection.
First phase production has been targeted at a rate of up to 150,000 cubic metres a day from the tested C1 and C2 reservoirs. In the second phase of the development plan, Po Valley plans to drill additional wells with a view to increase the size of the Selva natural gas resource.
3D seismic will be acquired across the Selva East, Selva South Flank and Riccardina prospects in the second half of 2018 and early 2019.
The application will be examined at the next Italian Ministry Hydrocarbon Commission meeting, which is expected to take place in July, before which Po Valley will prepare documents for the Environmental Impact Assessment to start the next stage of environmental approval.
"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," said Managing Director Edward Dawson.
"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," Dawson added.
Shares in Prospex Oil and Gas were up 9.4% at 0.49 pence, while United shares were up 2.3% at 5.01p on Tuesday.