Mamma mia! Po Valley gets its maiden reserve in Italian gas field
Italian gas explorer Po Valley has unveiled a maiden reserve of 13.3 billion cubic feet (BCF) at its onshore Selva field.
That equates to 8.38 BCF of 2P reserves attributable to Po Valley’s (ASX:PVE) 63 per cent stake in the field.
Typically ‘reserves’ refer to oil or gas discoveries that are commercially recoverable using existing technology while a resource is an initial, untested estimate. A 2P means it’s proven and probable, while a 3P includes ‘possible’.
The Selva field, near the historic city of Bologna, is due to start production in 2020 with targeted rates of 150,000 cubic metres per day.
The production concession, issued last month, includes East Selva, which recently had its resource upgraded to 34.8 BCF, the Fondo Perino prospect, Selva South Flank and Riccardina. Resources for the latter two will be estimated in the June quarter.
They plan to sell the gas into the local grid, promising riches based on 2018 Italian gas prices of €0.30/cm.
Po shares ticked up 5 per cent to 4c.