Po Valley up 80pc after striking gas in the Italian countryside
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Po Valley Energy has confirmed a significant commercial gas discovery at its Selva gas field in northern Italy.
The field is delivering strong gas flows from the Podere Maiar 1dir exploration well in the Podere Gallina exploration licence area, which it operates.
The exploration program found two reservoirs in the medium-upper Pliocene sands of the Porto Garibaldi Formation.
The news sent their share rocketing by lunchtime on Friday, up 80 per cent to 7.2c.
The thickest level had a peak flow rate of 148,136 scm/day (standard cubic metres) on a 3/8 inch choke and a pressure differential of 11 bar (a metric unit of pressure) with no water production.
Water in gas wells is a by-product which must be removed and disposed of carefully, as it’s generally brackish and using evaporation ponds is no longer considered acceptable.
The other level had a peak flow rate of 129,658 scm/day on a 3/8 inch choke with good pressure recovery.
Po Valley (ASX:PVE) now plans to apply for a production concession from the Italian government before July.
“The strong flow rates achieved with small pressure differentials and fast recovery are above our expectations,” said Michael Masterman Po Valley Energy chairman and CEO.
He said they’d drilled six gas fields in the Po Valley and had successful results from each.