Prospex Oil and Gas (PXOG) told investors on Tuesday it has begun civil works and well site preparations for Bainet West, a new exploration well on the EIV-1 Suceava Concession, North East Romania.
The company said preparations will take several weeks and that it aims to mobilise the drilling contractor in the second half of June.
The drilling and testing programme at the well is expected to take 15 - 20 days.
Prospex Non-Executive Chairman, Bill Smith, said, "Thanks to Bainet West having similar seismic attributes to nearby producing gas fields in and around the Concession, its excellent definition on 2D seismic, its close proximity to existing gas infrastructure, and its cost-effective drilling programme, the new well has a highly attractive risk/reward profile and therefore represents a compelling opportunity to build on our successful track record.”
Shares in Prospex Oil & Gas were trading 9.87% higher at 0.206p a share following the news
Bill Smith added that it was an exciting time for Prospex Oil & Gas, commenting: "With drilling operations on course to commence at Suceava in summer 2019, plans being advanced to bring the Selva gas field in Italy into production in 2020 at a rate up to 150,000 cubic metres / day, and ongoing work programmes to de-risk gross prospective resources of up to 2tcf of gas at our Tesorillo Project in Spain, high impact activity is underway across our portfolio of European onshore projects.”
Bainet West will be Prospex's third well in the past 2 years. The previous two wells, Bainet-1 in Romania and Podere Maiar in Italy both resulted in commercial gas discoveries.
Prospex's wholly-owned subsidiary, PXOG Massey Limited, holds a 50% interest in the 984 sq km Concession.
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