June 29, 2005
Australia’s Po Valley Energy (ASX: PVE) has encountered gas over three separate zones in its 100%-owned appraisal well in the Sillaro field in northern Italy.
The ASX-listed petroleum explorer and developer announced today that the Sillaro-1 appraisal well — 30 kilometres west of Bologna and Po Valley’s largest gas target in Italy — had discovered gas in the primary Pliocene target, and also gas indications in a deeper target and in shallower sands not previously considered as gas bearing.
Po Valley’s Chief Executive, Mr. Michael Masterman, said today Sillaro-1 would now be cased and the well completed to allow testing of all three levels, followed by a three to five day production test later in July.
“Wireline log interpretations from Sillaro-1 show 5 metres of net gas pay in high porosity sands in the primary Pliocene target, between the 2,193 metres and 2,233 metres interval,” Mr Masterman said.
“This is an encouraging result with further potential upside from our investigations into gas indications in the shallower Pliocene and deeper Miocene intervals,” Mr Masterman said.
The target Pliocene zone has an interpreted gross gas pay of 40 metres with the gas held in two groups of thin bed sequences containing a total net pay of approximately 5 metres. The Pliocene well logs show good porosity of 25-32% and no water.
“This thin bed sequence closely correlates with the Budrio-3 well, 300 metres away, which was drilled in 1956,” Mr Masterman said.
“Additionally, gas indications were interpreted in two shallower upper Pliocene zones (1,742-1,785m and 1,935-1963m) not previously recognized as gas bearing in nearby wells drilled in the 1950s.
“Initial wireline log analysis indicates the deeper Miocene section (between 2,491-2522m) is also interpreted as having possible gas bearing sands but this section has historically been difficult to assess from early log interpretations.
“We expect that production testing will be required to definitely evaluate this interval.”
Po Valley will now case Sillaro-1 to its total depth of 2,610 metres to allow testing on the Upper Pliocene, Pliocene, and Miocene levels.
“The commercial focus will be on the Pliocene target interval between 2,193 metres and 2,233 metres as this zone has traditionally generated excellent gas flow rates in the Po Valley,” Mr Masterman said.
“These initial results are a positive step forward in the development of the company which in the past 12 months has successfully drilled three fields in the Po Valley — Santa Mandalena, Vitalba, and now Sillaro.”
If proved commercially viable, Sillaro-1 is just 50 metres from pipeline infrastructure connecting into Italy’s national gas distribution network.
The Sillaro gas discovery follows the discovery of gas by Po Valley in its Vitalba-1 deviation well further north from Sillaro near Milan. This well will be put on production test following completion of the Sillaro test work.
Michael Masterman Po Valley Energy 0417 851 303
Kevin Skinner Field Public Relations (08) 8234 9555 / 0414 822 631
Hydrocarbon reserves have been estimated by Ecopetrol, the Consulting Geologist, using the definitions and guidelines of the SPE and WPC.
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