Italy: BRS Begins Po Valley Drilling

Texas-based BRS Resources has announced that it has began drilling on its exploration well in Po Valley in Italy. The well is a development well, targeting remaining gas resources in a partially deleted field, the company says.

3D seismic technology was used to identify the remaining gas resources in the field. The Po Valley area has traditionally been a rich source of gas in Italy, producing more than 27 trillion cubic feet of gas since the 1950s, CEO and president of BRS Steve Moore has previously said.

This is the first well that BRS has drilled, a move that Mr. Moore welcomed.

"We are excited to be drilling our first well," he said. "Using conventional drilling techniques, it will be drilled to a total depth of approx. 6,500 feet (2,000 metres). We have employed state-of-the-art drilling technology to target the reserves and have minimal impact on the environment."

Mr. Moore also praised the financial implications for the company from any gas recovered. BRS Resources has a 17.35 per cent pre-payout interest in the well, rising to 25 per cent after any payout.

"'Unlike the U.S. natural gas market the European natural gas market has an average gas price of $11.53 per mcf (December 2011), compared to an average $3.16 per mcf in the U.S," he said. "The demand to produce gas locally has increased in the region and domestically produced gas will help reduce dependence on imports which will create greater energy security."