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(Sharecast News) - Prospex Energy announced on Friday that production has resumed at the Viura gas field, with revenues expected in November.
The AIM-traded firm said the Viura-1B development well, drilled by Heyco Energy Iberia, reached its revised total depth of 4,500 metres on 21 October, uncovering significant gas shows and several potential reservoir formations, notably in the deeper Utrillas-B formation, which had not previously been explored.
It said the deepening of Viura-1B proved successful, with the well encountering a new gas-bearing interval in Utrillas-B below the proven Utrillas-A formation.
Logging and flow testing were set to follow, with analysis expected to potentially revise the field's gas reserves upward.
Gas production from Viura-1B would be linked to existing processing facilities, facilitating immediate revenue generation as flow tests began.
Meanwhile, the field resumed production from Viura-1 ST3 on 15 October, achieving flow rates of up to 17 million cubic feet per day.
Prospex holds a 7.2365% stake in Viura through its 7.5% interest in Heyco, entitling it to 14.473% of the field's production income until the capital investment was recouped.
The total cost of the additional well depth for Utrillas-B, budgeted at 2.5m, had been met, with Prospex's share at 0.375m.
"I am extremely pleased to announce further successful results from the Viura-1B development well," said chief executive officer Mark Routh.
"Although there is a great deal of analysis to be carried out to fully assess the implications of the well results to the recoverable reserves from the Viura field, this has transpired to be a highly successful project in which to be involved.
"Deepening the well to evaluate the previously undrilled formations below the proven, developed and producing Viura gas field has turned out to be an inspirational decision."
Routh said there were positive signs that a new gas bearing interval had been encountered, with further analysis and flow tests required to quantify the impact on recoverable reserves.
"It is also good news that the existing well on the Viura field successfully recommenced production last week with the produced gas being sold into the grid."
At 1356 BST, shares in Prospex Energy were up 1.32% at 5.78p.
Reporting by Josh White for Sharecast.com.