ENI’s Guendalina Field in Adriatic Sea to Commence Additional Production in October, Says Partner

Rockhopper Exploration said on Monday that the sidetrack well at the ENI’s operated Guendalina gas field in the Adriatic Sea offshore Italy has successfully reached its target depth (TD) at 3,276m measured depth (MD) on schedule and budget, explaining that ENI found more gas at the sidetrack well and that production should commence in October.  

‘Wireline logging has confirmed that all the target levels are gas bearing and have been encountered slightly higher to prognosis in an up-dip position with good reservoir characteristics and with an additional deeper gas level. The well is now being completed as a producer with gas production anticipated to commence in late October at which time a further announcement will be issued’ reads a note released on Monday.

The field is off the coast of Italy. Rockhopper owns a 20% interest, while ENI controls the remaining 80%.

“This is positive news for Guendalina, and we look forward to increasing production from the field later in the year, which will enhance our already strong cash position” Sam Moody, Chief Executive Officer, commented.

Italy’s Ministry of Economic Development approved and awarded the project's production concession in January 2010.

DELUSION IN EGYPT

On the other hand, Rockhopper reported that its proposed acquisition of Beach Energy’s production and exploration assets in Egypt is unlikely to proceed because a partner of Beach has exercised its ‘pre-emption’ right.

"We are clearly disappointed to have been pre-empted on the proposed transaction. Nonetheless, the fact that one of the JV partners has decided to pre-empt demonstrates that we have successfully identified a good quality opportunity and been able to negotiate the purchase on attractive terms” Moody commented in a separate note.