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(Sharecast News) - European gas and power project investor Prospex Energy announced on Wednesday that production income from the Viura-1B development well was expected to start in early December.
The AIM-traded firm said the well, drilled by Heyco Energy Iberia (HEI), reached a total depth of 4,500 metres, with approximately 4,100 metres of true vertical depth, on 21 October, and was now being connected to existing gas processing facilities.
Prospex holds a 7.2365% stake in the Viura gas field through its 7.5% ownership of HEI.
Under the terms of its agreement, Prospex said it would receive 14.473% of production income from the field until it recouped its initial capital investment made in August.
The Viura-1B well was extended by an additional 450 metres to appraise the Utrillas-B formation.
Prospex said that the deeper section confirmed the presence of gas-bearing sandstone reservoirs and was completed with a cemented liner.
Flow testing for the interval was planned during a scheduled plant shutdown in the second half of 2025.
Following imminent flow testing, the Viura-1B well would be placed on long-term production.
Meanwhile, the drilling rig had been relocated to the Viura-3 site to reinstate a produced water disposal well, enhancing the management of water from the Viura-1 ST3 production well.
"The Viura-1B development well has been successful and we await confirmation of the anticipated flow rates from the substantial reservoir sections encountered in the main reservoir target of the so-called Utrillas-A formation," said chief executive officer Mark Routh.
"Analysis is ongoing to fully assess the implications of the well results to the recoverable reserves from the Viura field, the flow test numbers will enable confirmation that the project has met and hopefully exceeded its pre-drill objectives.
"I look forward to updating shareholders with results from the flow testing and further analysis as soon we have firm data to share."
At 1406 GMT, shares in Prospex Energy were down 4.04% at 6.53p.
Reporting by Josh White for Sharecast.com.
