Shares in Po Valley Energy (ASX: PVE) spiked on news the company had commenced the commissioning schedule on the first gas field to be brought into production in northern Italy.
Today’s news sent Po Valley’s shares up 13c, or 8.4 per cent, to $1.68 at 11.11am.
Po Valley chief executive Michael Masterman, said the company commenced the pre-production schedule this week at the Castello field, east of Milan.
“This is a milestone for the company and follows a successful civil and mechanical works program on site since July which was completed ahead of the scheduled four months to allow commissioning to commence this week,” Mr Masterman said.
“The key checkpoints over coming weeks will be on the field’s pressure vessels, a trial gas flow run and health and safety checks on the integrity of the surface plant.”
Po Valley operates exclusively in northern Italy exploiting the large hydrocarbon system, and it is on the verge of becoming a significant gas producer in the fast-growing and under-supplied Italian market as it brings its first fields into production.
The Perth-based company anticipated Ministry approvals and first gas for commercial gas sales to be introduced into the pipeline in mid to late November.
Po Valley’s second planned production contributor, the Sillaro field east of Bologna, is expected to commence commissioning work from January next year.
The majority of prefabricated equipment is now on site at Sillaro and mechanical assembly of the production plant will commence shortly.