April 18, 2011
Valley Energy Limited (ASX:PVE) is pleased to announce that Italian
energy authorities have granted the final approval for the drilling of
Vitalba-1dirA, the deviated well that is a critical step in the
Company’s plans to recommence production at the Castello gas field and
that the Company has now contracted the drilling rig required for the
Following sudden pressure decline in the existing Castello well
(Vitalba-1dir) in mid-2010, the gas field has been operating at limited
production rates, specifically around 3,000 cubic metres per day. After a
comprehensive geological review by the Company and its external
advisors, it was concluded that the initial well location encountered an
isolated gas reservoir, and that there was a good probability that
commercial gas reserves could be accessed by a new well.
The plan for the new well was submitted to the Italian regulatory
authorities for approval and authorisation was received in late March.
The Vitalba-1dirA well will be deviated from the current Castello gas
plant location and connected to the existing production plant. Subject
to drilling success, production is expected to recommence towards the
end of the 3rd quarter 2011 or early in the 4th quarter if rig
availability is slightly delayed.
The Company has signed a drilling contract with LP Drilling Srl, to
secure the availability of their hydraulic drilling rig HH200. The rig
is the same that was used to drill Bezzecca and Sillaro-2dir wells. The
drilling operation is planned to start immediately after rig HH200’s
current obligations are fulfilled.
Po Valley also announced that the 2D seismic acquisition campaign in the
Sant’ Alberto and Podere Gallina permit areas north and northeast of
Bologna, had been completed on schedule and on budget. The dataset has
been forwarded to Geotrace Technologies Ltd in the United Kingdom for
Po Valley Energy’s Chief Executive Officer, Mr Giovanni Catalano:
“The securing of the rig contract to drill the
Vitalba1dirA well is a critical step in our plan to bring the Castello
gas field back into full commercial production. Assuming drilling
success the new Vitalba well will allow us to access the remaining
Castello field’s gas reserves, providing an important increase in the
Company production and cashflows. What’s more, we are confident that, in
light of the quality of the seismic data acquired, the validity of the
Sant’Alberto and Cembalina projects will be further confirmed”.
Po Valley Energy
+39 06 42 01 26 675
Field Public Relations
(08) 8234 9555 / 0414 822 631
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