Prospex Energy plc (AIM:PXEN) is pleased to announce that the Viura-1B development well which is being drilled by HEYCO Energy Iberia S.L. ("HEI") has successfully reached its revised targeted Total Depth ("TD"). TD of 4,500 metres which is ˜4,100 meters True Vertical Depth ("TVD"), was reached on 21 October 2024 in the 6-inch hole section of the bottom 450 metres of the well. Drilling the Viura-1B well deeper to evaluate the Utrillas-B formation appears to have been a highly successful commercial decision, with good gas shows and several potential reservoir formations encountered in this previously undrilled section and with valuable new data acquired.
The Viura gas field is currently back on production with gas being flowed from the existing producing well Viura-1 ST3. Production revenues from the Viura-1B well expected in November 2024.
Prospex owns 7.2365% of the Viura field through its ownership of 7.5% of HEI. Prospex will receive 14.473% of the production income from the Viura gas field until payback of its initial capital investment from the acquisition in August 2024.
Having reached TD, the operator has run wireline logging tools to evaluate the Utrillas-B formation prior to completing this interval with a 4½ inch liner. A multistage completion will then be installed to allow an extensive flow testing programme to establish the flow rates from the different sections of the Utrillas-A prior to placing the well on long-term production. The flow testing program for the Utrillas B section will be performed later in 2025.
The well has already exceeded pre-drill expectations for the main reservoir target the Utrillas-A and preliminary analysis indicates it has encountered a new gas bearing reservoir interval in the previously undrilled deeper Utrillas-B formation.
As already announced on 2 October 2024, the well encountered the main Utrillas-A reservoir unit 50 metres high to prognosis with significant gas shows throughout the drilling and coring of the main reservoir target. Gas bearing reservoir was also encountered some 30 metres TVD below the deepest gas bearing intervals in nearby wells. The deepening of the well to evaluate the Utrillas-B formation has also been successful. Gas bearing reservoir formations have been encountered and analysis of the wireline log data to be acquired across this newly drilled formation will be carried out to assess the magnitude of the gas in place in this newly drilled formation. Crucially, flow testing will be conducted to establish reservoir deliverability prior to bringing the well onto production. Production facilities at the Viura gas plant, which is connected to the Spanish national grid network, will be able to process the gas produced during the testing phase for immediate export and sale.
The total extra cost of deepening the well to appraise the Utrillas-B section is on budget at a gross cost of €2.5 million. Prospex has already paid its 15% share of the costs (€375,000) to deepen and complete the well.
Mark Routh, the CEO of Prospex, commented:
"I am extremely pleased to announce further successful results from the Viura-1B development well. Although there is a great deal of analysis to be carried out to fully assess the implications of the well results to the recoverable reserves from the Viura field, this has transpired to be a highly successful project in which to be involved.
"Deepening the well to evaluate the previously undrilled formations below the proven, developed and producing Viura gas field has turned out to be an inspirational decision. There are positive signs that a new gas bearing interval has been encountered with further analysis and importantly flow tests required to quantify the impact on recoverable reserves.
"It is also good news that the existing well on the Viura field successfully recommenced production last week with the produced gas being sold into the grid.
"I look forward to updating shareholders with results from the flow testing and further analysis as soon we have firm data to share."
