Po Valley Energy (ASX: PVE) shares could see further uplift today after its greenfields Gradizza-1 gas discovery in the La Prospera licence, northern Italy, flowed 247,000 standard cubic feet of gas per day during production testing.
Importantly, flow rates are expected to improve once clean-up operations are completed.
The company also noted that well pressure recovered quickly throughout the testing period, indicating potential that the target Quaternary gas bearing level has access to significant volumes of gas. No formation water was produced.
It will take the next few months to review the data and consider rigless testing to better evaluate the real reservoir capability.
Following incorporation of the production test results in the reservoir model for the field, both the commercial potential and Contingent Resources of the Gradizza discovery will be determined and reported.
*Gradizza*
Gradizza-1 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 was de-risked through farm-outs to AleAnna Resources and Petrorep Italiana, who are paying 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*
The flow of gas from a greenfields exploration well that had been judged to have a 27% chance of success is a positive for Po Valley.
With Italy dependent on imports for 90% of its gas needs, the company will have little difficulty finding buyers for gas from Gradizza-1 if it its proven commercial.
The gas discovery could drive growth in Po Valley’s share price today.
*Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.* Reported by Proactive Investors 5 hours ago.
Importantly, flow rates are expected to improve once clean-up operations are completed.
The company also noted that well pressure recovered quickly throughout the testing period, indicating potential that the target Quaternary gas bearing level has access to significant volumes of gas. No formation water was produced.
It will take the next few months to review the data and consider rigless testing to better evaluate the real reservoir capability.
Following incorporation of the production test results in the reservoir model for the field, both the commercial potential and Contingent Resources of the Gradizza discovery will be determined and reported.
*Gradizza*
Gradizza-1 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 was de-risked through farm-outs to AleAnna Resources and Petrorep Italiana, who are paying 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*
The flow of gas from a greenfields exploration well that had been judged to have a 27% chance of success is a positive for Po Valley.
With Italy dependent on imports for 90% of its gas needs, the company will have little difficulty finding buyers for gas from Gradizza-1 if it its proven commercial.
The gas discovery could drive growth in Po Valley’s share price today.
*Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.* Reported by Proactive Investors 5 hours ago.