Prospex Energy (PXEN ) has confirmed that gas production from the Viura-1B well in Spain has reached the planned plateau rate of 180,000 normal cubic metres per day.
The operator, HEYCO Energía Iberia (HEI), returned the Viura-1B well to production on Friday 17 October. On 22 October, the well delivered 186,333 normal cubic metres at a 30% choke setting. This will be the ongoing plateau rate. Notably, the water cut remains low and is decreasing.
Prospex owns 7.24% of the Viura field through its 7.5% stake in HEI. The company is accruing 14.47% of production income until the expected ~£8 million initial investment is repaid, plus 10% per annum interest.
Prospex Energy’s CEO Mark Routh said: “I am very pleased to confirm that the flow rate of natural gas from the Viura-1B well in the Viura field has achieved the planned plateau production rate within a week of the recommencement of production last Friday.”
“The confirmation of the performance of this reservoir is especially pleasing after the recent frustrating one-off event which delayed the resumption of production after the successful workover in July.”
“This confirms our view that Viura is a prolific gas field and was an excellent addition to our portfolio and that it is likely to continue production and cash flows long into the future.”
The Viura acquisition increased Prospex’s estimated reserves by 6.5 billion cubic feet (0.18 billion cubic metres) net. The Operator’s best estimate of recoverable gross remaining reserves at Viura is 90 billion cubic feet (2.5 billion cubic metres) and may rise following evaluation of newly drilled horizons and an updated reservoir model once reprocessed 3D seismic is reinterpreted.
View from Vox
Reaching and holding the 180,000 normal cubic metres per day plateau only days after restart puts Prospex’s biggest cash generator back to work. With 14.47% of production income accruing until roughly £8 million plus 10% interest is repaid, sustained plateau rates and a low, declining water cut point to stronger near-term cash flow. The next catalysts are operational consistency and any uplift to reserves once the reprocessed seismic feeds into a refreshed model.