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Po Valley Energy Doubles Gas Flow From Gradizza-1 Well

Po Valley Energy (ASX: PVE) has more than doubled flow rates from rigless testing of its Gradizza-1 gas discovery in the La Prospera licence, northern Italy, to 15,000 standard cubic metres (529,700 standard cubic feet) per day.

This compares with initial flow rates of 7,000 standard cubic metres per day from testing carried out post completion.

The increase reflects a continued clean-up of the well and reduction through gas flow, of the formation damage around the perforations and gravel pack.

Well pressure following build up and shut in recovered quickly and no formation water was associated with gas production.

Results are expected to be analysed to evaluate the resources and commercial potential of the well.

Gradizza

The greenfields Gradizza-1well had intersected a 10 metre gross gas column with 9 metres of net gas sand in the primary target area.

The structure is located in the Ferrara province north of Bologna and had pre-drill Prospective Best Estimate (2C) Resources of 9 billion cubic feet of gas. It was identified from an interpretation of 68 kilometres of 2D seismic purchased from Eni.

Drilling risks were managed through farm-outs to AleAnna Resources and Petrorep Italiana, who paid a disproportional share of costs for drilling the well to earn their 10% and 15% interests respectively. Po Valley retains a 75% stake in La Prospera.

Analysis

That Po Valley Energy has more than doubled gas production from a greenfields exploration well that was originally judged to have a 27% chance of success is a validation of the company's credentials as a targeted explorer.

Should the updated results prove commercial, the company should have little difficulty finding buyers for Gradizza gas, given that Italy imports 90% of its gas.

There is further upside to come as the company reviews and interprets new 3D seismic data acquired from Eni over the Vitalba West Prospect in the Cascina Castello production concession to finalise a well location and drilling program.

While a potentially smaller prospect, this is located only a short distance from the existing Vitalba gas production facility and within the current production concession licence area, offering potential to be tied in quickly in the event of a success.

Another key catalyst will be the development of the Bezecca-1 well, which will be tied into the Vitalba facility.

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