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Prospex, United Oil soar on Italian gas discovery
Shares in Prospex Oil & Gas and United Oil & Gas soared on Friday as the companies announced a significant commercial gas discovery at the Podere Maiar appraisal well in the Po Valley region of Italy.
Based on strong flow rates, which significantly exceed pre-test expectations, and the well's close proximity to the Italian national grid pipeline connection, the operator, Po Valley Exploration (PVE) declared Podere Maiar a "commercial discovery", Prospex said.
PVE will now prepare and submit a production concession application to the Italian Ministry in the first half of this year.
In tandem with this, analysis of the log and well test results, the company said it would start to generate revised contingent resource and reserve estimates, which is targeted for completion in the second quarter of 2018. This work will include reservoir engineering to optimise production from the two gas levels over the field life.
Prospex holds a 17% interest in Podere Maiar and United 20%.
Prospex shares rose 11.4% to 0.64p while United was up 5% to 5.29p.