Po Valley Energy (ASX: PVE) is a leading independent Oil and Gas enterprise that currently operates exclusively in northern Italy exploiting the large hydrocarbon system, and it is now a gas producer in the fast-growing Italian market.
All of the Po Valley Energy's fields are in very close proximity to the pipeline grid and major consumers in the north of Italy.
Po Valley Energy confirms gas production capacity at Sillaro-2 production well
Near term Italian gas producer, Po Valley Energy (ASX: PVE) has confirmed gas production capacity from inital tests on the Sillaro-2 well, east of Bologna in northern Italy.
Importantly, Po Valley reported that short confirmatory tests on Level PL2A in the Sillaro-2 well had confirmed the results in the levels previously flow tested in the Sillaro-1 well. The wells are 500 metres apart at target depth.
Po Valley has secured two gas sales contracts totalling about A$150 million with Italian gas distributors, Elettrogas and Italtrading SpA from the first three years of gas produced at Sillaro and another field in northern Italy, Castello – the first of two imminent production contributors for the Company.
The PL2A level was perforated from 2,304 metres to 2,309 metres measured depth (MD) and tested at a maximum rate of 4.33 million cubic feet per day (122,700 cubic metres a day) on a 1/4 inch choke.
Po Valley’s Chief Executive Officer, Mr Michael Masterman, said the outcome was a positive early sign for future field production rates.
Masterman said, “successful results were also achieved in a new level, PL2C0, adding potential new productive capacity to the field. These initial results are solid and validate our expectations for the development of this field. Two additional levels in Sillaro-2, comprising the previously tested PL2C2 and a new shallow level at 2,000m, will be tested this week.”
The PL2C0 level was perforated from 2,246m to 2,261m MD, and tested at a maximum rate of 1.79 million cubic feet per day (50,600 cubic metres a day) on a 3/16th inch choke.
Masterman said the log results in Sillaro-2 confirmed the main payzones in the nearby Sillaro-1production well across a gross interval of 140 metres from 2,180-2,320 metres MD, “with a very good match between the two wells”.
