Prospex Energy plc has more than doubled production and revenue from its producing assets with the start of gas sales from the completed Viura-1B development well in northern Spain.
EXPANSION
Flow testing is underway at rates of up to 500,000 standard cubic metres per day, (17.7 million standard cubic metres per day), with 72,000 scm/d (2.6 MMscfd) net to the company.
The well will be on long term production at a stabilised plateau rate of 300,000 scm/d, which is 43,000 scm/d net to Prospex.
The company said that its net production since the start of December is now 82,000 scm/d.
The figure excludes production from the Viura-1ST3 well which has since mid-October been producing “intermittently” at rates of up to 200,000 scm/d, net 29,000 scm/d.
Prospex added that water handling issues continue to be managed until completion of the workover on the Viura-3 water injection well.
The rise in income from production will fund 11 further wells in the next 18 months to two years across the company’s three onshore production licences in Spain and Italy, and prospective acquisition blocks in Poland.
“The Viura-1B well test flow rates have exceeded pre-drill expectations from the larger than prognosed reservoir section of the main Viura reservoir target,” said chief executive Mark Routh.
“More than doubling the production and therefore the revenue from our producing assets will put Prospex on an extremely sound footing to be able to fund its expansion plans.”
Prospex owns 7.2365% of the Viura field through its7.5% ownership of Heyco Energy Iberia S.L.
The company receives 14.473% of the production income from the field until payback of its capital investment, expected to be around £8 million, plus accrued 10% p.a. interest.