Prospex Energy plc reported “better than expected” preliminary results from drilling the Viura-1B development well in northern Spain.
GAS SHOWS
Drilling began on 22 June and has reached the reservoir with operations due to begin appraisal of a deeper section of the well.
The company said that deeper appraisal could “significantly” increase revenues and create further value at “a fraction of the cost” compared with drilling a standalone well.
Viura 1B is one of three wells targeted for drilling by operator Heyco Energy Iberia S.L. (HEI) on the producing gas field.
Prospex owns 7.5% ownership of HEI and consequently 7.2365% of the field, estimated to contain estimated gross remaining reserves of 90 bcf with 6.5 bcf net to Prospex.
The company added that V1B encountered the main Utrillas-A reservoir unit 50 metres high to prognosis with the top reservoir “indicating good quality reservoir rock”.
“There have been significant gas shows throughout the drilling and coring of the main reservoir target,” said Prospex.
“The well will be connected to the existing gas processing facilities on site, thus generating revenues immediately, with production income expected by the end of October or early November.”
Deeper drilling of 200 to 300 metres will appraise the undrilled Utrillas-B formation below Utrillas-A.
Prospex has paid its 15% share of the costs to deepen the well and, if successful, to test and complete the exploratory work.
Chief executive Mark Routh added: “The Viura field contains gas at high pressure and high temperature, so this well could have been extremely challenging to deliver with a total depth of 4,100m MD and a maximum deviation of 45 degrees.
“By drilling ahead now the operator delivers for €1 million, or €2.5 million in the success case, an exploration well which would otherwise have cost over €25 million as a standalone well.”
The two wells due for drilling during H2 2025 will be funded from revenues from existing and new production from Viura or new funds if required.
Viura, El Romeral and Marismas are the three onshore producing gas fields in Spain.