News: Po Valley Energy targets higher Italian gas production

Po Valley Energy (ASX:PVE) is targeting additional gas production from its Bezzecca gas field with the drilling program for the Bezzecca-2 well now in the final stages of completion.

Bezzecca-2 has the potential to double production from field, where the Bezzecca-1 is expected to produce gas at an initial rate of 20,000 cubic metres (706,293 cubic feet) per day.

The company is on track to commence on-site works for Bezzecca-1 in the autumn after securing production concession status earlier this month.

Tenders were received, assessed and finalised for engineering, procurement, pipeline installation and surface facility construction.

The company is also close to completing the environmental impact statement for the Sant’Alberto gas field, which has Best Estimate (2C) Contingent Resources of 2.1 billion cubic feet of gas.

Having already received the preliminarily production concession, the EIS represents the last regulatory step before the full grant of the production concession.

Po Valley plans to construct a small modular plant at Sant'Alberto field and tie-in to the national grid via a simple connection about 200 meters away.

It has also finalised the pre-Front End Engineering and Design study for the Teodorico project.

Reprocessing of 3D seismic acquired in 2013 was also completed and the company will commence an in-house 3D geophysical reinterpretation in August.

Further 3D seismic will be purchased in due course to start the evaluation of promising exploration targets adjacent to Teodorico within the same AR94PY license.

The company has also submitted the updated EIS for the Selva (Podere Maiar-1) drilling application to the Emilia-Romagna Region for approval.

It has received 70 square kilometres of 2D seismic for the Selva Stratigraphic prospect within the Podere Gallina license from Eni and reprocessing will commence shortly.

Cash as at the end of 30 June 2014 amounted to €1.04 million (A$1.5 million).

The company generated revenues of €1.35 million on total gas production of 4.98 million standard cubic metres for the June 2014 quarter.