Oz Po Valley Gets Okay for Italian Well
Australia’s Po Valley Energy has got Italian government’s initial approval for planned first production well at its onshore Selva Malvezzi field, northeast of Bologna, it said January 15.
Selva is 63%-owned by Po Valley, with the remainder owned 20% by United Oil & Gas and 17% by Prospex Oil & Gas. Po Valley said it is targeting final Selva production approvals by the first half of next year and to complete the well and field connection pipework with first gas targeted by late-2020.
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“The preliminary award of the Selva production licence is a key and major regulatory milestone in advancing our Selva project towards production. Receipt of the preliminary award furthers our strategy of securing exposure to the surging Italian domestic gas market,” CEO Michael Masterman said, adding that domestic gas market prices rose more than 50% to US$9.60/mn ft3 in 2018.
Once operational, the company is targeting production of up to 5.3mn ft3/day from the C1 and C2 sand levels. A Po Valley drilling programme, Podere Maiar 1 dir, late in 2017, intersected two identified gas reservoirs, C1 and C2, with subsequent good flow rates and a 2C resource of 17bn ft3. Subject to successful 3D seismic results from the upcoming programme, additional wells would be drilled across the Selva gas field and nearby prospects existing in the exploration concession, it said.
Given its scale and proximity to the national grid, the development plan for Selva is straightforward, the company said, and includes installation of an automated gas plant at the existing Podere Maiar 1dir well site and then a 1-km connection to Italy's national gas grid.