Po Valley Energy Limited (ASX:PVE) aims to bring the Selva Malvezzi gas field in Italy into first production next year with a preliminary production concession granted and environmental approval documentation submitted.
A maiden 2P gas reserve of 13.3 billion cubic feet (bcf) for the onshore project in the country's north was declared earlier in the year.
Throughout the March quarter new contingent resources in the Selva North and South Flank of 14.1bcf (2C) were added and with the benefit of the Podere Maiar well and seismic data, the chance of success at East Selva has been increased.
A new large prospective resource for the Riccardina structure was also added taking this field’s total prospective resources to 91.5bcf.
Po Valley chief executive officer Michael Masterman said: “This has been a robust opening to calendar 2019, with significant inventory and approvals process gains across our gas and oil assets in northern Italy.
“A key milestone was the award of the preliminary production concession for Selva – this maintains our momentum to have this field into first production next year.
“The new resource estimates have provided a richer platform on which to now progress our work on these reservoirs to more commercial standing and certainty to deliver Po Valley a pipeline of emerging production assets in northern Italy over the medium term.”
Under the first phase of the development plan Po Valley will install a fully automated gas plant at the existing Selva/Podere Maiar 1dir well site and install a 1-kilometre long pipeline to connect the well with the nearby Italian National Gas Grid.
Based on dynamic reservoir studies, the field development is designed to produce at a rate of up to 150,000 cubic metres a day from the successfully tested C1 and C2 production levels in the medium-upper Pliocene sands of the Porto Garibaldi formation.
In the March quarter, the company’s offshore project Teodorico was granted primary environmental approval and additional requests from the Ministry for specific plans in relation to water treatment are under preparation.
Po Valley hopes to complete the environmental impact assessment (EIA) process and obtain full environmental approval in the third quarter of 2019.
The PVE team reported a maiden prospective resource of 106 million barrels recoverable from an Original Oil-in-Place (OOIP) of 312 million barrels since the end of the first quarter at the Torre del Moro oil condensate prospect.
This evaluation highlighted a large and structurally closed faulted ramp anticline feature geologically similar to the discovered Villafortuna oil field in northern Italy.
Further work is underway to de-risk this large-scale exploration project.