Installation of the surface plant has commenced at Italian gas producer Po Valley Energy's (ASX: PVE) Sillaro gas field, east of Bologna in Italy.
Michael Masterman managing director of Po Valley said the Italian contractor, Semat Spa, commenced site activities this week with a target four-month schedule for completion, and commissioning expected in January 2010.
Sillaro-2 production well, spudded in July and was successfully drilled on schedule to a target depth of 2364m. Testing at Sillaro has confirmed 6 productive gas bearing levels in the field.
Installation works at Po Valley's Castello gas field, east of Milan, have now reached an overall project progress of 88% both with civil activities and mechanical works.
Castello is on schedule for commissioning in October. First gas is expected from Castello in November 2009.
Fox-Davies Capital issued a note on Po Valley following the announcement, saying progress at Sillaro is good news for the company. It is retaining its 'Buy' recommendation with an unchanged target price of A$2.70.
The news that first production is expected from Castello in November is also good, the broker added.
